| Many work hard and meet with success, as they | | | | resources. It should also explain your stand in the |
| batter through storms, handle market swings and keep | | | | company and the details of the stock you hold. You |
| consumers satisfied. You achieved all this for yourself | | | | can also mention the person whom you feel can |
| and your family. But have you spent one minute and | | | | manage the business once you are out of the picture. |
| thought about what would happen to your business | | | | Calculate if you have enough assets to pay estate tax |
| when you are not there? If you haven't, then it is high | | | | so as to balance the estate and keep the business |
| time you gave it a serious thought. So here are some | | | | and the monetary resources you need to reach your |
| simple business succession and estate tax planning | | | | financial goal. Don't forget to clarify each goal and you |
| strategies. | | | | should be open to communicate and share your vision |
| According to a market survey, 25 percent of the | | | | with partners, key players, and family. |
| family business shareholders who are senior citizens | | | | How to develop a sound succession plan? |
| have not thought of any estate succession planning | | | | . A succession plan should be flexible- Your plan must |
| other than writing a will. They have not bothered to | | | | be easy to amend and modify as business, family and |
| conduct any research. If you are one of them then | | | | health situations are dynamic. |
| wake up, succession planning for business involves | | | | . Select the right individual to handle the company in |
| more than just deciding whom you intend to give your | | | | your absence- Select a person, whom you find |
| assets to, after your death. | | | | capable to navigate through the minefield. This is |
| Basically, succession planning is like a road map for | | | | necessary if you have more than one qualified |
| successors, heirs and partners to follow when you are | | | | successor. Distribution of money and assets among |
| no more or when you are unable to handle the | | | | the siblings sometimes can be really discordant. |
| business issues due to disability or old age. This plan | | | | . Knowledge of federal estate tax- Economic Growth |
| can include the business stock distribution, assets and | | | | and Tax Relief Recognition Act of 2001 attempted to |
| life insurance distribution details. It can also include debt | | | | eliminate or reduce the federal estate tax transfer |
| retirement services, buying and selling agreements | | | | system, but instead it created a tax system that |
| between heirs and partners, division of responsibility | | | | features repeal, relief and reappearance. From 2004, |
| allotted to successors and any other aspects that | | | | the gift tax exemption was freezed at $1 million. Thus, |
| would be related to the business. The plan can also | | | | a businessman can easily pass on more assets after |
| establish the value of the business. | | | | his death than during his lifetime. |
| So where should you start from? | | | | Learn about various exemptions, deductions, |
| A succession planning strategy must clearly explain | | | | exclusions- You can reduce the estate tax by |
| your objectives and goals as well as your company's | | | | adapting the annual gift tax exclusion in which you can |
| present financial resources and the current human | | | | relax the gift tax to the tune of $11,000 per year. |