Christine Borrett and Ross Holley article on “How to Continue Your Business’s Legacy With Advanced Planning”
“How to Continue Your Business’s Legacy With Advanced Planning,” Bloomberg Tax
In an article published in Bloomberg Tax on September 8, 2022, Senior Counsel Christine Borrett and Associate Ross Holley discuss the necessity of estate and succession planning for businesses ahead of time and the unique and pressing challenges that business owners are often hesitant to face. They discuss why business founders are reluctant to cede control and other issues about business succession.
“The natural successors to a business often lack the interest or skills to assume management, causing the business to fall into disarray and ultimately be acquired, restructured or dissolved,” they write. “A widow or a widower who was not actively involved in the business when the founder was alive might find themselves in a particularly difficult position likely not in line with their own expectations for retirement.”
Borrett and Holley explain how, for founders of closely held businesses, success stories in the business succession realm have a common theme: long-advanced planning with great employees.
“The expectation of a reduced exemption in 2026 is certainly inspiring more interest in succession planning,” according to Borrett and Holley. “Business owners who would not necessarily be motivated to transfer interests to younger family members at present have found motivation to make gifts sooner than later, and before the Tax Cuts and Job Act sunsets.”
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