Family businesses are currently responsible for more than 70% of global production and are one of the principal creators of private wealth. For these reasons, skilled estate planning is essential to the tax-efficient transfer of the family business across the generations. The issue is that although most family business owners have estate plans in place, the plans are most likely outdated.
Daniel Geltrude, Managing Partner of Geltrude & Company, states that "most estate plans become 'old' after a few years. Usually circumstances in people's lives such as family relationships, business matters and their net worth change, making it wise to review and potentially refine their estate plans."
Not only should estate plans be up to date, but according to Geltrude, the plans should be designed to take into account the latest advanced planning strategies. Frank Seneco, President of Seneco & Associates, agrees and states "many family business owners fail to take full advantage of ways to legitimately avoid paying estate, gift, and other taxes.
See Russ Alan Prince, Most Family Business Owners Should Update Their Estate Plans, September 15, 2015