Generational Wealth Transfer Strategies

Business Succession

We are entering the era for the Great Wealth Transfer where $84 trillion is expected to be passed down to the next generation over the next 20 years.  Ultra wealthy families need to approach this transition with comprehensive, multi-faceted plans and should rely on guidance from their advisory team to navigate the complexities of the process.

A big component in the Great Wealth Transfer is the transition of family-owned businesses to the successor generations.  According to the Brown Brothers Harriman Private Business Owners Survey, 91% of business owners want their companies to be passed down through the family but three out of four have yet to communicate that to their families or outline what that would entail.  After spending decades attending to the details of building a successful company, the plan to exit the company is often overlooked.

Although business succession is a broad topic that can be difficult and emotional to tackle, the details will not be sorted out organically.  Strategic contemplation of the options and a solid plan are imperative when considering the future of a family-owned company.  Early conversations and planning help clients to fully leverage planning strategies.  A transparent plan with all parties on the same page will make for the smoothest transition when the time comes to implement.

We recommend the use of life insurance to facilitate estate equalization, provide estate tax liquidity, pay off debts, fund buy/sell plans, and even fund retirement planning for the exiting generation.  Thoughtfully balancing family planning and financial strategy creates an opportunity for our clients to enhance their legacy in a way that suits them best.

Click here to read:  Business Succession: Meticulous Planning is a Must.

Contact us with any questions or opportunities to help you or your clients achieve identified goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.