Brothers Bob & Larry have owned B&L Lumber for over 30 years. Bob is ready to retire and Larry, his junior by 10 years, wants to continue to be actively involved in the business. Bob’s son, Rick, is currently the President and running the day-to-day business. Rick is also the only member of the next generation to work in the business. Bob would like to gift stock to his son, while also selling some stock to meet his retirement objectives. Larry is not ready to sell stock now and is uncertain how to handle his brother’s desires. He is not comfortable with Rick’s ability to run the business on his own. In addition, both brothers wonder how to deal fairly with their respective spouses and family members who are not active in the business – but who may inherit stock in the future. How could Bob and Larry plan to be fair to each other, Rick and family members what may inherit business stock? How might Rick buy the stock on his own? How can the brothers minimize estate and capital gains taxes on any sales and transfers? Is now the right time for the brothers to look at the transactions described? Call us for more information.
Planning for the Next Generation
