Yum! Center For Global Franchise Excellence At The University Of Kentucky
7 episodes
9 months ago
Podcast Show Notes:
Introduction:
Kathy and Becca delve into essential planning considerations for late-stage business owners in this episode of Small Bites of Business Insights.
Highlighting the importance of estate planning, charitable planning, transition planning, and legacy planning for late-stage business owners.
Estate Planning for Late-Stage Business Owners:
Emphasizes the need for a comprehensive estate plan, focusing on treating children fairly or equally when the largest asset is the business.
Discusses strategies like bifurcating real estate from the business or restructuring stock classes to ensure equitable distribution.
Charitable Planning:
Explores tax advantages in charitable planning, showcasing how a charitable beneficiary for assets like an IRA can minimize tax implications and benefit charitable organizations.
Transition Planning:
Stresses the significance of transition planning, whether it's a sale, passing on the business, or changing ownership.
Advocates for careful planning to ensure the smooth transition of the business and its assets, addressing concerns of employees and future generations.
Sophisticated Wealth Transfer Strategies:
Explains complex wealth transfer strategies, highlighting valuation discounts and minority interest transfers to optimize the use of exemption amounts and facilitate business succession.
Legacy Planning:
Encourages the creation of a family constitution and storytelling about the wealth's origin, values, and intended use for future generations.
Suggests co-investing, forming charitable foundations, or engaging in meaningful family discussions to maintain family unity and shared responsibility for the wealth legacy.
Conclusion:
Reiterates the importance of careful planning and strategic considerations for late-stage business owners to ensure a smooth transition and a lasting family legacy.
Hosts:
Dr. Kathy Gosser, YUM! Assistant Professor of Franchise Management and Director of the Yum! Center for Global Franchise Excellence
www.business.louisville.edu/yumcgfe
Rebecca McDade, JD - Attorney
https://www.linkedin.com/in/rebecca-mcdade-86b8407a/
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Podcast Show Notes:
Introduction:
Kathy and Becca delve into essential planning considerations for late-stage business owners in this episode of Small Bites of Business Insights.
Highlighting the importance of estate planning, charitable planning, transition planning, and legacy planning for late-stage business owners.
Estate Planning for Late-Stage Business Owners:
Emphasizes the need for a comprehensive estate plan, focusing on treating children fairly or equally when the largest asset is the business.
Discusses strategies like bifurcating real estate from the business or restructuring stock classes to ensure equitable distribution.
Charitable Planning:
Explores tax advantages in charitable planning, showcasing how a charitable beneficiary for assets like an IRA can minimize tax implications and benefit charitable organizations.
Transition Planning:
Stresses the significance of transition planning, whether it's a sale, passing on the business, or changing ownership.
Advocates for careful planning to ensure the smooth transition of the business and its assets, addressing concerns of employees and future generations.
Sophisticated Wealth Transfer Strategies:
Explains complex wealth transfer strategies, highlighting valuation discounts and minority interest transfers to optimize the use of exemption amounts and facilitate business succession.
Legacy Planning:
Encourages the creation of a family constitution and storytelling about the wealth's origin, values, and intended use for future generations.
Suggests co-investing, forming charitable foundations, or engaging in meaningful family discussions to maintain family unity and shared responsibility for the wealth legacy.
Conclusion:
Reiterates the importance of careful planning and strategic considerations for late-stage business owners to ensure a smooth transition and a lasting family legacy.
Hosts:
Dr. Kathy Gosser, YUM! Assistant Professor of Franchise Management and Director of the Yum! Center for Global Franchise Excellence
www.business.louisville.edu/yumcgfe
Rebecca McDade, JD - Attorney
https://www.linkedin.com/in/rebecca-mcdade-86b8407a/
Podcast Show Notes:
Introduction:
Welcome to "Small Bites of Business Insights," where today's episode delves into the world of wealth planning, focusing specifically on transfer taxes and how they play a crucial role in managing assets and legacies.
Becca is the guest in this episode, providing valuable insights and explanations regarding transfer taxes and how they can impact individuals' financial planning.
Understanding Transfer Taxes:
Transfer taxes are levies imposed on assets being transferred to others, either as gifts during one's lifetime or through inheritance after death.
Key transfer taxes discussed are the gift tax, estate tax, and GST (Generation-Skipping Transfer) tax.
Gift Tax:
The gift tax applies to transfers made during an individual's lifetime.
A 40% tax rate is applied to the value of the gift, with exemptions allowing up to $17,000 per recipient annually without tax implications.
The lifetime exemption for gift tax is $12.9 million per person.
Estate Tax:
The estate tax applies to transfers made upon an individual's death.
A 40% tax rate is applied to the taxable estate, but the beneficiaries are not directly responsible for this tax; it is paid from the estate's assets.
The lifetime exemption for estate tax is also $12.9 million per person.
Generation-Skipping Transfer (GST) Tax:
The GST tax is an additional 40% tax imposed on top of the gift or estate tax.
It applies when transferring assets from one generation to a skip generation, such as from a grandparent to a grandchild.
The lifetime exemption for GST tax is also $12.9 million.
Ways to Minimize Transfer Taxes:
Utilize the annual exclusion by gifting up to $17,000 per person each year.
Make unlimited gifts for education and medical expenses directly to educational institutions or medical providers.
Maximize the lifetime exemption of $12.9 million for both gift and estate taxes.
Utilize the marital deduction, allowing unlimited transfers to a spouse without tax consequences.
Implement wealth transfer strategies such as GRATs, GRITs, and SLATs to leverage exemptions and minimize tax burdens.
Conclusion:
Becca emphasizes the importance of strategic estate planning to maximize exemptions, minimize taxes, and preserve assets for future generations.
Future episodes will explore wealth transfer strategies and their relevance, especially for business owners, providing a comprehensive understanding of effective wealth planning.
Hosts:
Dr. Kathy Gosser, YUM! Assistant Professor of Franchise Management and Director of the Yum! Center for Global Franchise Excellence
www.business.louisville.edu/yumcgfe
Rebecca McDade, JD - Attorney
https://www.linkedin.com/in/rebecca-mcdade-86b8407a/
Small Bites Of Talking Wealth Planning
Podcast Show Notes:
Introduction:
Kathy and Becca delve into essential planning considerations for late-stage business owners in this episode of Small Bites of Business Insights.
Highlighting the importance of estate planning, charitable planning, transition planning, and legacy planning for late-stage business owners.
Estate Planning for Late-Stage Business Owners:
Emphasizes the need for a comprehensive estate plan, focusing on treating children fairly or equally when the largest asset is the business.
Discusses strategies like bifurcating real estate from the business or restructuring stock classes to ensure equitable distribution.
Charitable Planning:
Explores tax advantages in charitable planning, showcasing how a charitable beneficiary for assets like an IRA can minimize tax implications and benefit charitable organizations.
Transition Planning:
Stresses the significance of transition planning, whether it's a sale, passing on the business, or changing ownership.
Advocates for careful planning to ensure the smooth transition of the business and its assets, addressing concerns of employees and future generations.
Sophisticated Wealth Transfer Strategies:
Explains complex wealth transfer strategies, highlighting valuation discounts and minority interest transfers to optimize the use of exemption amounts and facilitate business succession.
Legacy Planning:
Encourages the creation of a family constitution and storytelling about the wealth's origin, values, and intended use for future generations.
Suggests co-investing, forming charitable foundations, or engaging in meaningful family discussions to maintain family unity and shared responsibility for the wealth legacy.
Conclusion:
Reiterates the importance of careful planning and strategic considerations for late-stage business owners to ensure a smooth transition and a lasting family legacy.
Hosts:
Dr. Kathy Gosser, YUM! Assistant Professor of Franchise Management and Director of the Yum! Center for Global Franchise Excellence
www.business.louisville.edu/yumcgfe
Rebecca McDade, JD - Attorney
https://www.linkedin.com/in/rebecca-mcdade-86b8407a/
