Non-Tax Aspects of Estate Planning - Part I
For our next few blogs, Suzana and I thought we would like to highlight some interesting aspects of the non-tax side of estate planning. Unlike the typical tax driven context upon which estate planning is often pursued, matters related to non-tax issues are not governed by reasonably strict and identifiable tax rules and regulations.
Creativity is the name of the game and often that must be combined with the fundamental tax planning and considerations in any event.
In some cases with the transfer of wealth included in one's assets are a family-owned company. As such, you need to consider four important challenges: strategic, succession, financial and family challenges.
An important starting point when considering the issue of succession planning is to determine, from your client's perspective, just what succession planning really is. Succession planning has been defined as the "process of creating and implementing a strategic plan for the family business that is designed to mesh the emotional and financial needs of the owner, family and the key employees, with the needs of the business as a viable ongoing entity".
Business succession planning has also been described as "planning for the orderly transfer of the management and the ownership of a business to new managers and new owners to avoid a liquidation of the business as well as the unnecessary taxes and other expenses in a manner that carries out the family's non-tax objectives".You will notice from the above-noted definitions that non-tax objectives are fundamental to the succession planning process.
We will continue to analyze and consider these issues in future blogs.
All the best,
Ian and Suzana.
