seven keys to a complete succession plan

your client probably hasn’t considered them all.

by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor

clients who own businesses should have a plan of succession.

one plan should be for when and how they will retire, and another for if they should die while they are in full control of the business. things happen and will happen and can be devastating to the family – financially and emotionally.

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helping a client develop a succession plan can be a valuable good deed for the family as well as providing a great feeling of comfort for the business owner. advising on how to transfer stock to successors or the next generation always represents additional services.

we’ve identified over 30 ways, in terms of taxes, that the transfer can be done. once we explain two or three methods to the client it becomes evident that we have to get seriously involved. if they want to have a sound succession plan, it is also clear that it should be done taking advantage of the best tax laws, and be as uncomplicated as possible.

additionally, advising in succession planning also includes:

  • lifetime financial planning for the main owner
  • identifying succession candidates and qualifying them
  • valuing the business
  • estate taxes
  • structuring the transfer
  • discussing problems within the family
  • how the succession planning process works, how it is done and the timing of it

the range of these services is also widespread, and encompasses the highest levels of our skills.

who needs this service

tax clients generally do not own their own businesses unless we are also the accountants for the business. the ones who are minor or minority owners are usually the younger members of the business. this then becomes a service that helps them after the senior owners retire, or plan for their retirement.

why the accountant is suited to offer this service

the accountant is suited to perform this service because they are, of all outside professionals, usually the most informed about the business and family dynamics. additionally, the accountant has access to the financial data of the business and the primary owner/operators.

the techniques used employ skills the accountant best has – such as income and estate tax planning, financial projection and budgeting skills, and cash flow management. the accountant also enjoys a high degree of independence that brings an element of trust and objectivity to the process, especially in getting the parties to sit down together to discuss the ramifications of different courses of action.