How to pass a business to the next generation without a tax bomb
Gifting strategies, valuation discounts, and when to start the conversation.
The earlier you start, the more options you have. Waiting until you're ready to sell or step down typically means a much larger tax bill — and far less flexibility.
Common strategies: annual exclusion gifting of shares (worth $18,000 per recipient in 2024). Grantor Retained Annuity Trusts (GRATs). Intentionally Defective Grantor Trusts (IDGTs). Sales to family limited partnerships. Each compresses today's value into the children's hands while you continue to run the business and earn from it.
These structures need a CPA, an estate attorney, and a business appraiser working together — and they need years of runway to deploy properly.
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