Depending on the circumstances, founders may benefit from evaluating trust structures, ownership arrangements, charitable planning, and other strategies designed to align with their long-term family and financial goals. Because many opportunities are time-sensitive, planning is often most effective when it begins well before a sale or liquidity event is underway.
What planning opportunities should founders consider before a liquidity event?
Short answer
A potential business sale can create opportunities to review asset protection, succession planning, wealth transfer strategies, and tax planning before a transaction occurs.
In this answer
Related questions
Can trust planning help reduce taxes when selling a business?
Potentially, yes.
For some founders and business owners, advance trust planning may create opportunities to reduce or defer certain taxes associated with a future business sale.
How can trust planning help prepare for a business sale?
Preparing for a business sale often involves more than negotiating a purchase price. The structure of your ownership, entities, and estate plan can have a significant impact on taxes, asset protection, and how sale proceeds are ultimately transferred and managed.
How do I prepare my family to manage my business and investments?
Prepare your family by organizing what you own, explaining how it works, and clarifying who will make decisions if you cannot. Introduce the people who may step in to your managers and advisors, and give them opportunities to learn before a transition. Your family does not need to handle every task personally, but they should understand their responsibilities, where to find information, and whom to ask for help.
When does tax planning become important?
Advanced tax planning often becomes more relevant as wealth, investments, and business value increase or when major transactions are anticipated.
Does a revocable trust protect assets from lawsuits or creditors?
Generally, no. Revocable trusts are primarily designed for probate avoidance and continuity planning — not liability protection.
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Advanced Planning
Advanced planning uses strategic legal, tax, and trust structures to address risks, transactions, tax opportunities, and family circumstances that go beyond traditional probate planning.
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