Asset Protection & Estate Planning
Stuart Sorkin, Stuart H. Sorkin P.C.
The business owner's primary goal in executing an exit strategy should be the protection of retirement savings generated from the transfer of his business from taxes and potential other creditors to maintain his lifestyle for the remainder of his life and to pass the maximum amount to his descendants upon death. Planning alternatives for minimizing income and estate tax liability are available; however, to maximize the value of these alternatives, they need to be implemented months, if not years, before the execution of an exit strategy. Additionally, we all want our descendants to live fairy tale lives; however, we are also aware they may face a negative personal situation (i.e., divorce, lawsuits or substance abuse) that could devastate their financial resources. You can utilize vehicles that will significantly reduce the risk that a personal situation will decimate your family's wealth after you are dead. There are steps the business owners can take steps to protect their retirement savings from creditors. Finally, if the business owner is transferring the business to a family member, there are favorable deal structures that might not be available from a third party purchaser. However, if the business owner fails to treat a family member substantially similar to the way he would treat a third party purchaser, then the business owner may not jeopardize the future success of his business but he may risk a substantial portion of their own retirement savings. This workshop will combine real-life stories with a presentation on planning alternatives to minimize taxes while protecting the sales proceeds and will also discussion the pitfalls of a transfer of a business to a family member.