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Gerry Lachnicht, CFA
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Gerry Lachnicht, CFA asked 3 months ago in Family Concerns

What is the best way to protect a family business or farm for estate planning purposes?

Assuming the family wants to leave the business to their children.

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Mark Kantrowitz
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Inheritance taxes can sometimes force the sale of a family business or farm if there are insufficient liquid assets in the estate to cover the liability.

Typical approaches to protecting the business/farm involve establishing a corporation or trust to own the business/farm and transferring ownership of the corporation before death or in a way that bypasses the tax liability. This can be complicated, so it is best to talk with an attorney or accountant that specializes in estate planning.

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