To avoid a forced liquidation or the need Job Function Email List to incur debt to pay estate taxes, there are a number of lifetime gifting strategies that can be implemented by the business Job Function Email List owner to minimize (or possibly eliminate) estate taxes. LEVEL ONE - MANAGEMENT Whether management of the business will rest in the hands of the next Job Function Email List generation, in the hands of key employees, or a combination of both, the business owner must learn to delegate and work on the business.
It can take many years to train Job Function Email List the successor management team so that the business owner can walk away from day-to-day operations. For many Job Function Email List business owners, giving up such control can be difficult. All too often, business owners focus more on the ownership and transfer tax issues involved in a business Job Function Email List succession plan and ignore the people issues. In the typical family business, the future leader is likely to be one of the business owner's children. If so, steps must be taken to assure that the future leader Job Function Email List has the support of the key employees and Job Function Email List other family member owners.
Generally, a gradual transfer of roles and Job Function Email List responsibilities gives the successor time to grow into his/her new position and allows the business owner some time to get use to his/her diminishing role. Thus, lead-time is important for a smooth transition. Many family businesses Job Function Email List are dependent on one or two key employees who are critical to the success of the business. These key employees are often needed to manage the business (or assist in the management of the business) during the transition period. Therefore, the succession plan must address methods to guarantee that key employees remain with the business upon the death, disability or retirement of the business owner.