As a business owner, you have multiple responsibilities to different people, and one of them involves critical long-term planning for your company. There are multiple occasions where it makes sense to review your existing documents and planning strategies, such as:
- The formation of agreements between business partners
- Liquidity events
- Companies in the start-up phase
One common strategy is to conduct gift planning during the start-up stages, like putting stock inside a trust for children to access later. Letting the stock appreciate inside the trust is often a better approach than trying to transfer it to children once the stock has already appreciated.
In the event of liquidity of some sort, it may make sense to gift to charity before the event happens. That way the client isn’t paying taxes on the appreciation and the charity of choice will receive a greater benefit in the form of funds. Reach out to us at 732-521-9455.