Business succession
Passing a business to one child
One child works in it and two do not. Dividing everything in thirds is rarely the answer.
An estate plan that divides everything equally can force a sale of the business to make the arithmetic work, which is usually the outcome nobody wanted.
The alternative is to transfer the operating company to the child inside it and equalize the others outside the entity, with insurance or other assets covering the shortfall.
What this involves
- Transferring the operating company
- Equalizing the other children outside it
- Insurance to fund a shortfall
- Transfers over time rather than at death
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Who does this work
