Fairfield County Business Succession Planning Attorney
Business Succession Planning Attorney in Greenwich, Stamford, Darien, Westport,
Fairfield, Trumbull, New Haven and Milford
A business succession plan provides for the orderly continuance of a business.
For example, a family limited partnership could be created to make the
transfer easier, while you retain control of your business. In a partnership
among non-family members a plan can be worked out for buying out partners
through the use of insurance so the business continues smoothly and the
estate of the partners who have passed is compensated for the full value
of their interest. For assistance with business succession strategies
you are urged to contact a Fairfield County estate planning lawyer for
Business Succession Strategies
Where you have a family business, you may provide asset protection with
a Limited Family Partnership. You set up a partnership giving children
a limited interest. The interest gives them no control of the business,
and only a part interest in the company's value. You may have to pay
a gift tax depending on how quickly you pass the interest to your children
and the size of the interest, but it is generally devalued because the
children have no control and cannot sell their interests. When you die,
children's shares attain full value as they now control the business.
Furthermore, they pay no estate tax on the interest they already own.
When you are a member of a partnership, you may be concerned about another
partner dying. You may not want the deceased partner's family intruding
into your business. The solution is to set up a procedure for the remaining
partners to buy out the interest of a partner when he dies. First, an
agreed upon value of the business is established by appraisal, and a Buy-Sell
Agreement or Buyout Agreement is put in place. Then all partners buy a
life insurance policy on each other. When a partner dies, the partners
use their life insurance policy proceeds to buy out the share of the deceased
partner at the agreed upon rate.
Business Succession Planning Lawyer Attorney in Connecticut
Massih Law, LLC, I provide business succession law services to clients throughout Fairfield
County and New Haven County including, but not limited to, Greenwich,
Stamford, Darien, Westport, Fairfield, Trumbull, New Haven and Milford.
I, John N. Massih, can devise and craft business succession strategies
to fit a client's circumstances. I would be happy to meet with you
and discuss your business situation, and assist you in determining the
best business succession plan and an effective strategy to avoid legal
or business problems for your business partners or even your loved ones
in the future.
Contact a business succession planning attorney
at the firm to discuss business succession strategies.