Successful Estate Planning (and Lower Inheritance Taxes)

Our estate planning and business attorneys met and guided the patriarch of a family run commercial building products provider and installer in Philadelphia through the process of gifting the ownership of his business to his sons and business partners as part of his estate and business succession planning. Contemporaneous with the gifting was the execution of a long term employment and private pension agreement securing a sizable income for the client and his wife for the rest of their lives. The planning steps reduced the size of his estate and the resulting inheritance taxes that his sons will have to pay. It also provided financial security for he and his wife allowing them to maintain the lifestyle that they desire.

Business Advisory Group attorneys met with the owner of a Bucks County based business that is a leader in the coating application industry, which provides local, national and international products for the oil, gas, and water industries. Our attorneys developed an estate plan with generational trusts for the owner’s descendants, financial power of attorney and healthcare power of attorney, and succession plan for the business to minimize taxes and maximize asset protection.

Questions Every Business Must Ask

Q. Has your business recently reviewed its legal structure to determine whether it is set up in the most advantageous manner for legal and tax purposes, considering recent developments and changes in the law?

Q. Do the owners of your business have a current, updated buy-sell agreement which controls how ownership interests in the business are to be transferred in the event of an owner’s death, disability or termination of employment?

Q. Have the owners of your business developed a succession plan to define how ownership and authority will transition upon the death or retirement of the present owners?

Latest News & Events

Selling Your Business: Resolve Major Issues Early In The Process

The letter of intent often kicks the can down the road with respect to key terms that will be negotiated in the formal purchase agreement. Frequently, the parties do not realize there are major points of disagreement until the first agreement draft is circulated. For this reason, the seller should push the buyer to produce… Read more »

Investments In Qualified Opportunity Zones Can Provide Significant Tax Benefits

by Jonathan Samel, Esquire The Federal Tax Cuts and Jobs Act (the “Act”), which became effective on January 1, 2018, created Qualified Opportunity Zones (QOZs) as a tool for promoting long-term investments in low-income communities. Through this program, investors are provided significant tax benefits for investing in businesses and in real estate located in QOZs. … Read more »

Non-Compete Covenants in Pennsylvania

by Robert Sebia, Esq. Pursuant to Pennsylvania law, restrictive non-compete covenants are enforceable only if they are: (1) ancillary to an employment relationship between an employee and an employer; (2) supported by adequate consideration; (3) the restrictions are reasonably limited in duration and geographic extent; and (4) the restrictions are designed to protect the legitimate… Read more »