Family Succession

Succession planning can be particularly complicated for family-owned businesses. Real succession planning involves the development of a strategy for transferring the trust, respect and goodwill built by one generation to the next. Heritage pays attention to the family dynamics that can be a crucial element in the success of the Exit Plan. Additionally, we use our accounting and financial planning expertise to help preserve maximum business value, giving your successors the ability to create their own long-term success.

Gifting to Family Members

This option is one of the simpler means of transferring your business, making it a popular option for some. However, the negative tax consequences of gifting to heirs can make this a poor choice for some exiting owners hoping to preserve the capital in their business.

Recapitalizing Business

In this scenario, the business owners exchange their ownership in the firm for both preferred and common shares. The exiting owners then keep the preferred portion and sell or gift the common stock to their successors. All future appreciation of the business is attached to the common shares at a much lower tax rate.

Setting up a Family Limited Partnership (FLP)

A FLP is a popular option that allows business owners to receive discounts when making gifts or transferring assets. It can protect assets from creditors and lawsuits and can also shift taxable income.