Febert & Associates Family Governance & Business Succession Planning

Family Governance & Business Succession Planning

In conjunction with the income tax and estate tax planning components of a client’s overall financial plan, there are usually a number of trusts, partnerships, LLC’s, S corporations and other entities created by the client’s legal counsel. We have experience in advising clients regarding the family governance and control aspects of these entities.

Determining who should be named trustees or controlling shareholders of the corporate general partner not only has income and estate tax implications, but it also has to be considered in conjunction with family dynamics, the skills, talents and goals of the individual family members, the desire to maintain future flexibility and the family’s long-term goals and objectives. We can guide a family through this process by offering our insights and experience from dealing with other families in similar situations.

To the extent that a family business is involved, we can advise regarding any required buy-sell agreements and methods to fund the buyouts. We will work closely with the family’s legal counsel to insure that the agreement is in the best interests of both the business and all the family members involved. To the extent that life insurance will be a component of the buyout, we can determine if the necessary cash flow is available to fund the premiums, or we can analyze any premium financing arrangement that may be proposed.