Cummings & Lockwood LLC
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10 Challenges When Planning for the Business Owner

November 2016

Author: Daniel G. Johnson

In this presentation, Daniel G. Johnson, a trusts and estates attorney with Cummings & Lockwood, discusses 10 estate planning challenges when planning for the business owner.  A gift of an interest in a business need not throw the operations of the business completely upside down.  However, in order for a gift to be respected, there are some formalities that must be observed.  This presentation discusses the most common traps for the unwary business owner, and how best to avoid them.  (15:00)

Presentation Outline

"Soft" Challenges:

 1.  Lack of a capable heir

 2.  Emotional attachment to business

 3.  Lack of coordination between documents and wishes

 4.  Indirect communication

 5.  Estate liquidity

Other Challenges:

 6.  Need to respect separate existence of a family company

 7.  Establish a separate bank account using company EIN

 8.  Use the company's name

 9.  Do not use company assets for personal expenses

10.  Establish recordkeeping and accounting procedures