Wealth Planning Advisory 1Q18

The Human Element: An Integral Part of Family Business Succession Planning

Family businesses play a big part in the U.S. Economy. According to The Small Business Administration, more than 90% of all businesses operating in the U.S. are family-owned. Family businesses are responsible for 78% of the new jobs that are created. Yet, the tragedy is that less than one third of the businesses owned by families survive the transition from the first generation to the second generation. The failure rate increases dramatically for transitions beyond the second generation. Read More >

Wealth Planning Advisory 4Q17

Two Novel Approaches To Family Business Succession Planning

In the right situation, two novel approaches are available for transitioning ownership of a family business.  They are a “profits interest” in entities such as a limited partnership (LP) or a limited liability company (LLC) that is taxed as a partnership and a corporate spinoff. Read More >

Wealth Planning Advisory 3Q17

Using Intra-Family Loans as a Wealth Transfer Strategy

One of the primary strategies for making lifetime transfers to family members is outright gifts. Outright gifts require relinquishment of full dominion and control over the gifted property, and they may have gift tax implications.

An alternative to outright gifts to family members is intra-family loans. If properly structured, intra-family loans will not result in any gift tax consequences, or the relinquishment of wealth by the family member making the loan. Read More >