Closely held businesses are an integral part of many estate plans. Closely held businesses not only offer operational frameworks, but they offer other advantages as well, such as tax planning and creditor protection. Closely held businesses often make up a large percentage of an individual’s net worth and can be the subject of some of the more challenging decisions for clients with regard to estate planning. Individuals whose families are involved in the family business should take special care when forming the business and creating an estate plan. Some family members may be interested in continuing the family business from one generation to the next generation, while other family members may want the family business sold after the founding owner’s death or incapacity. While all estate planning is personal, when a family business is part of the equation, special steps should be taken to plan out the business’s future for the next generation.
