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90% of all U.S. businesses are family businesses. These 20 million businesses generate 49% of GDP, employ 59% of the workforce and create 78% of new jobs. 70% of family businesses fail to survive the second generation and 87% fail to survive the third generation. Why the high failure rate? Two reasons: 1. Failure to plan adequately for succession from the older generation to the younger generation from logistical, liquidity and emotional perspectives; and 2. Failure to adequately estate plan to minimize income and transfer tax costs and creditor/predator risks.

This four-hour afternoon course analyzes why family business succession plans (or the lack thereof) most often fail, identifies the precipitating downfalls and explores remedies to prevent them. A model(s) is presented for effective succession from one generation to the next. Particular emphasis is provided on how recent developments and estate and gift tax uncertainty on the immediate horizon may tip the balance.

Objectives

To learn the challenges and opportunities facing entrepreneurial business desiring to pass on within the family to a future generation(s) and approaches and tax breaks making it possible. This course analyzes why family business succession plans (or the lack thereof) most often fail, identifies the precipitating downfalls and explores remedies to prevent them. A model(s) is presented for effective succession from one generation to the next. Particular emphasis is provided on how recent developments and estate and gift tax uncertainty on the immediate horizon may tip the balance.

Highlights

  • Basic questions to be addressed for effective succession planning
  • Developing a plan (step-by-step format)
  • Recent developments worthy of attention and action
  • When to begin planning, how often to revisit an existing plan
  • Transfer and income tax considerations
  • Protection maneuvers against creditors, predators and in-laws
  • Wills, revocable trusts, irrevocable trusts, ILITs, POAs and so on
  • Capital structure devices: family partnerships, family LLCs, S corps
  • Direct lifetime vs. testamentary gifts, transfers and intra-family sales
  • Liquidity considerations
  • Symptoms of a plan in trouble, possible solutions
  • How CPAs enter the succession planning fray to build their own business

Who Will Benefit

Any person interested in successfully seeing a closely held family business from one generation to the next

Credits

Category Amount
Tax 4.00

Leaders

  • Bradley P. Burnett

    Bradley Burnett, J.D., LL.M., is a practicing tax attorney in Colorado with 33 years of tax practice experience. His practice emphasis is on tax planning and tax controversy resolution. He also prepares a handful of tax returns. Prior to establishing his own law firm in 1990, he practiced tax accounting with national and local CPA firms, worked as a trust officer for a Denver bank and managed the tax department as partner in a medium-­-sized Denver law firm. After receiving his undergraduate degree in accounting and law degree (J.D.), he earned a Master of Laws (LL.M.) in Taxation from the University of Denver School of Law Graduate Tax Program. Mr. Burnett has delivered more than 2,900 presentations on U.S. tax law, tax planning and ethics to CPAs, attorneys, enrolled agents, civic groups and corporations throughout all fifty U.S. states, Washington, D.C., the Bahamas, Italy, Greece, Turkey and Canada. He has authored the texts of 30 CPE (or CLE) courses, authored and taught tax materials for Commerce Clearing House (CCH), Practitioner Publishing Company (PPC) and written articles for national and local tax journals over the past 30 years. Bradley served for four years as adjunct professor at the University of Denver School of Law Graduate Tax Program, where he pioneered an employment tax course and occasionally pinch-­-hit in the IRS practice and procedure field. He has also appeared on television answering tax questions for call-­-in viewers of Denver NBC affiliate KUSA Channel 9. Brad has received the Illinois Society of CPAs Instructor Excellence Award for teaching in Chicago and five times has been the top rated, most requested instructor for CPA Society annual tax conferences. Burnett’s seminar style is to deliver the subject matter in briskly paced, enthusiastic and witty fashion. His forte’ is the candid communication of practical ideas relating to tax law.

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