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Business succession planning alternatives

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Lifetime gifts Bequest Lifetime sale Estate sale Buy-sell agreement

If you want to:

Sell your business interest

Not appropriate Not appropriate You may be able to sell your business outright-but there is no guarantee Your estate may be able to sell your business outright-but there is no guarantee Buy-sell agreement can be used to guarantee the sale of your business

If you want to:

Give business to your children

You can control the timing and size of the gifts You control the size of the gift through your will Not appropriate Not appropriate Not appropriate

If you want to:

Sell business to your children

Can be used in conjunction with sale Not appropriate You can control timing of sale-but sale is not guaranteed Your child could buy from your estate-but sale is not guaranteed Buy-sell can be used to guarantee your child's option to buy your interest

If you want to:

Minimize value of your estate

Can be used to reduce the value of your estate and maximize gift tax exclusion Will not minimize value of your estate You can control timing of sale-but sale is not guaranteed Value of business must be included in your estate Value of business must be included in your estate, but the buy-sell can help establish that value
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