Firm President Beth Shapiro Kaufman spoke with Builder Magazine on the tax benefits of family-owned businesses developing and implementing a succession plan. Visit Builder Magazine's website to see the full article.
Excerpt taken from the article.
In other instances, the succession structure families set up can have a big impact on limiting tax liability. "If there are family members in a position to lead the business, you can set it up through a series of gifts or sales of interests to the next generation," says Beth Shapiro Kaufman, member at Washington, D.C.-based law firm Caplin & Drysdale, which specializes in succession planning within the real estate sector.
Selling to a partner or employees
"A sale to a partner can be negotiated on terms satisfactory to both sides, if you set it up right," says Kaufman. That can include a buy-sell agreement that establishes the price at which one partner buys out the other, if the remaining partner has the cash.