The Estate Tax... Again?!?
Aug 17, 2010
The estate tax is again looming on the horizon, so it’s important to recognize how an estate plan---to mitigate the estate tax---should dovetail into a comprehensive succession plan.
As the law is written, an estate in excess of $1 million will be subject to a 55% estate tax starting in 2011. Though Congress could still act to change the law, it’s doubtful they will---especially given the dire need for tax dollars.
Keep in mind the following points as you consider how to integrate an estate component in your succession plan.
- Common, off-the-shelf, estate planning strategies will not mitigate the estate tax and maintain an operation’s integrity for the family business owner.
- Focus first on your goals for succession, and then craft your estate plan to complement your succession solution.
- Plan for your ownership transition and the family’s financial security first; then consider the estate tax.
- There is no "silver bullet" to mitigate the estate tax; an effective plan will require a combination of tested tools and techniques.
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