What do we Owe Our Children?
Money isn’t the Primary Issue.With a Commitment to one another’s Growth and Happiness, Business Families will Thrive
by Henry D. Lanes
One way of approaching compensation “the elephant in the living room” that too often doesn’t get talked about is to think of parents in a family business as wearing three hats: those of family leaders, business managers and business owners.
What’s the real bottom line for parents who head up a business family? Perhaps a story will help.
A tourist was admiring the beautiful farms of Lancaster County, Pa. Curious about the crops, the man spied an Amish farmer by the side of the road, stopped his car, got out and asked the farmer, “What are you growing here?” More…
Form a Family Limited Partnership
The University of Connecticut
by B. Patrick O’Donnell Jr., J.D., L.L.M., C.L.U.
For owners of family businesses, the issue of succession invariably becomes a terrible dilemma: How to transfer assets to the next generation while simultaneously maintaining controlover major decisions and avoiding crippling estate tax liabilities.
Growing numbers of owners are discovering a suitable answer in an estate and financialplanning technique known as a Family Limited Partnership (FLP). In an FLP, control lies withthe general partners, who can have a tiny equity ownership (as little as 1%, although 5% is morethe norm) while still retaining control and deciding how much partnership income goes to thelimited partners. The general partners are the decision makers and the limited partners hold mostof the equity. More…