ACG CIN: April 2018 Lunch. Estate Planning Issues for Closely Held Businesses

Many business owners that spent decades building a business and have weathered the recession are seriously considering the next phase of their lives – cashing out – as the economy continues to improve. It is estimated that as many as 80 percent of U.S. businesses are closely held family enterprises, that less than a third of these businesses continue into the second generation, and that less than ten percent continue into the third generation.

As it becomes increasingly difficult for retiring baby boomers to find a child or other younger relative to purchase the business, it is also increasingly important for the advisors to be acquainted with the issues surrounding such a transition so they can ask the right questions.

• What are the owners’ cash flow needs in retirement?
• How have the owners prepared the next generation to lead?
• Is there a clear successor? Or is a sale to an outsider the best exit strategy?
• Has the value of the business grown to such a degree that additional tax issues must be considered?
• When should succession planning begin?

J. Aaron Byrd and Andrea Costa Laden, attorneys in Frost Brown Todd’s wealth planning group, will be joining us to discuss why early attention is essential for appropriately planning for a transition, and to walk through a high-impact planning strategy that should be considered in advance for larger deals.