How to transfer your business to your kids Photo: Adam Gault/Digital Vision/Thinkstock

How to transfer your business to your kids

Here’s a true tax-victory story of how to do a business succession right Joe asked me to review two plans suggested by his professionals, his CPA and lawyer For each plan, Sam would own 100% of his company, and the estate would end up with $4M in cash instead of $4M in stock Two problems always cause us to turn thumbs down on such plans If the value of the stock continues to grow, the excess value over the current $4M will enrich the IRS by 40 cents on the dollar When Joe's wife passes, the IRS will be guaranteed a big payday Instead, we put in place a three-step plan involving S-Corp. status, non-voting stock and an IDT  

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TAGS: Taxes
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