Succession Planning
- Introduction to Succession Planning
- Succession Planning Challenges
- What Should a Succession Plan Include?
- Succession Planning Questions to Ask
- How is Succession Planning Related to Estate Planning?
- Systematic Gifting
- Passing on a Successful Business
- Will Your Successors be Ready?
- Selling the Business to a Family Member
- What is a Buy-Sell Agreement?
- Components of a Buy-Sell Agreement
- Setting a Price for a Buy-Sell Agreement
- Funding a Buy-Sell Agreement
- Cross-Purchase Agreements
- Stock Redemption Plans
- Other Types of Buy-Sell Structures
- Choosing the Right Funding Method
- GRAT or GRUT?
- Family Limited Partnerships
- Replacement Planning
- Other Considerations When Exiting a Business
Choosing the Right Funding Method
The type of funding method you choose for your buy-sell agreement depends on several factors, including:
- The size of your business
- How your business is structured
- Your business tax bracket
- How many owners/partners have a share in your business, and their ages, tax brackets, and ownership percentages
- How much cash or credit is available to the business or business owners
- How your buy-sell agreement is structured
Depending on how your business is structured and run, you may choose a single funding method or use several in combination when creating your buy-sell agreement.
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