2023

One advantage of selling to a non-grantor trust is that it allows you to lock in the capital gains at a fixed value while deferring the recognition of the gain until payments are made under the promissory note. This strategy can effectively transfer the appreciation in value to the trust beneficiaries.

A value gap is the difference between what a seller thinks his/her business is worth and what the actual fair market value of the business-increase your value (decrease your "Gap") with strong management team,loyal & diverse customer base, competitive advantage & scaleable & efficient operation.

A dynasty trust is a long-term, irrevocable trust designed to pass on and manage wealth for multiple generations. It allows individuals to transfer assets, such as money, property, investments, or closely-held business interests into a trust for beneficiaries (typically family members) while minimizing estate tax, gift and generation-skipping transfer (GST) taxes and protecting the assets from creditors and potential squandering.

What is an estate tax and a gift tax and how are they different? The federal estate tax applies to the transfer of property at death. The gift tax applies to transfers made while a person is living. The generation-skipping transfer (GST) tax is an additional tax on a transfer of property that skips one or more generations.

What are the advantages and disadvantages of a management buyout?: Managers know the business, suppliers, vendors, and clients/customers. If they have “skin in the game” in the form of their own invested capital, they’ll be more motivated to keep the business profitable.

A self-canceling installment note (SCIN) is a promissory note that contains a provision under which the buyer’s obligation to pay automatically ceases in the event that the seller dies before the note’s maturity date. SCINs are typically used in family business transfer situations.

I have seen myriad Letter of Intent (LOIs), from bare-bones versions to extremely detailed and comprehensive LOIs. A more detailed LOI may serve you best, simply because it makes negotiating the definitive purchase agreement and ancillary agreements easier.

a family holding company is an LLC or a limited partnership that’s established to hold assets for the benefit of family members. One goal of this structure is to ensure that assets can be shifted out of your estate and into the hands of future generations or trusts for their benefit.