What is Fair is Not Always Equal
Business owners work very hard to build their business and it may be the largest asset they own. The continuity and success of a family business may occur with children joining as a second generation ownership group. Things start to get complicated when not all of the children are involved in the business. Often it will lead to unfavourable feelings over estate distribution and conversely the passing of the business to children who are not active in the business.
With appropriate estate, business and tax planning along with the use of life insurance proceeds, an estate equalization plan is the most cost effective way of sharing assets with those not fully participating in the business.
Understanding the hidden stresses, fluctuating values and potential tax liabilities involved in the distribution of family assets enables the Sorrell Advisory Team to develop estate equalization plans to balance and maintain equitable value to each heir.
Related Technical Strategies & Concepts:
- Deemed Disposition Rules
- Estate Freeze
- Estate Equalization
- Succession Planning
- Tax Treatment of Assets
