Succession planning is a long-term process. Whichever path they choose, they have a lot to consider and may feel overwhelmed. We are experienced in business succession planning which we break it down in three phases:
Design: Generally, we take the following approach to develop a business success plan which may involve an estate freeze, the use of a family trust, a life insurance program, or a non-resident tax strategy where appropriate:
- Review the personal objectives of the owner, the circumstances surrounding the company and the family;
- Estimate the company’s worth and, where required, prepare a valuation of the business;
- Determine whether there is a need for insurance and the type of insurance;
- Develop a strategy to either transfer the family business to the next generation or to sell the family business;
- Evaluate the tax consequences involved in passing or selling the family business.
Implementation: We coordinate with the client’s legal counsel to implement the business succession plan, including:
- Review of any required legal documents prepared by the legal counsel; and
- Assist in any tax filings that may be required to implement the business succession plan.
Annual Review and Update: We monitor the business succession plan year by year and adjust it for changing tax laws, the owner’s changing circumstances and personal objectives.
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