Succession Planning Roundtable - Managing the Estate Tax: How Family Businesses Can Avoid Paying It

Managing the Estate Tax: How Family Businesses Can Avoid Paying It

The estate tax doesn't have to be inevitable. Numerous legal strategies and planning techniques exist that can help family businesses avoid paying estate taxes entirely, making it what tax experts often call a 'voluntary' tax.

To help family businesses navigate these complexities, attorneys Bea Wolper of Emens Wolper Jacobs & Jasin and Meredith Sugar of Taft/ will explore practical approaches - from trusts to gifting strategies - designed to minimize or eliminate estate tax liability and preserve wealth across generations:

Understanding Estate Tax and Its Impact

• Overview of federal estate tax exemption and current thresholds
• Common pitfalls in estate planning leading to unexpected tax burdens
• Strategies to minimize or avoid estate tax liability through proper planning

Irrevocable Trusts in Succession Planning

• Definition and key features of irrevocable trusts: asset protection, control, and tax advantages
• How transferring business interests to irrevocable trusts removes value from the taxable estate
• Advantages including avoidance of probate, protection from creditors, and generation-skipping opportunities
• Trustee roles and governance considerations

Additional Methods for Reducing Estate Tax Liability

• Charitable trusts and donations to reduce estate value
• Family limited partnerships and gifting strategies