Estate Equalization and Family Businesses

{2 minutes to read}  In this blog, I want to talk about the importance of estate equalization in family businesses. Many times, a husband and wife may own a closely held business. And let’s say they have two children, one is involved in the business, and one is not.

The planning challenge for people like this is that they usually have a simple, traditional Will where their assets are split between the children, equally. This puts the family, the business, and the child working in the business in a vulnerable position, because now all their efforts are being channeled into a business that will eventually be owned by a sibling, even though that sibling isn’t working in the business. The equal asset split at 50/50 is not necessarily fair. One child may be in New York, while the other may be in Florida or California or Chicago. And now they are thrust into the unenviable position of being equal owners in a business. With good estate planning, life insurance could act as a tool to allow for the equalization of the estate without putting the siblings into the position of being partners.

Take a look at the information below and let us know how we can help you to avoid potential inter-family squabbles that happen when families do things in a way that really doesn’t address the family business and the succession plan for that business.

The Importance of Estate Equalization in Family Business Succession Planning

Registered Representative offering Securities through American Portfolios Financial Services, Inc. (APFS) Member FINRA/SIPC. Investment Advisory Services are offered through G&G Planning Concepts, Inc. which is not affiliated with APFS.  Strategic Wealth Advisors Network and Gassman Financial Group are not affiliated with APFS. 

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