Some business owners prefer to retain control over their businesses until they pass away. Others would rather retire and let younger family members assume ownership. There are a couple of different options to do that.
Business succession planning is sometimes considered merely part of the general planning for the owner's estate. However, many people who have family businesses prefer to have younger family members run the business long before the current owner passes away. Those owners seek options for other family members to gain ownership of the business in a cost-friendly way.
Recently, the Insurance Journal discussed to ways to do that in "Gifting Agency Stock & Grantor Retained Annuity Trusts."
The options discussed are:
Whatever you do, this kind of planning should only be undertaken with the advice and assistance of a qualified estate planning attorney.
Reference: Insurance Journal (May 23, 2016) "Gifting Agency Stock & Grantor Retained Annuity Trusts."
© 2021 Legacy Law Center