ESOPs Offer Tax-Efficient Business Succession in an Estate Plan

Employee stock ownership plans offer a tax-efficient estate planning opportunity for business owners to pass the wealth-generating entity to their people who own shares in it.

Typically, an ESOP transaction is a significant liquidity event for the current primary business owners. They need to create an effective succession strategy in alignment with their wishes. Planning may be done independently from and prior to any anticipated ESOP transaction to maximize potential tax savings.

Benefiting Loyal Employees

Many businesses have dedicated employees whom the owners would like to reward by sharing some of the future upside of the business’s success. Essentially, an ...