Key Takeaways
- Families with regular council meetings have a 40% higher succession survival rate.
- Family members should have 3-5 years of outside work experience before joining the family business.
- Valuation discounts for lack of marketability and control typically total 20-35% for family transfer planning.
- IDGTs allow "sales" to junior family members that are non-events for income tax while removing assets from the taxable estate.
- The 2024 lifetime exemption of $13.61 million per individual sunsets to approximately $7 million in 2026.
This track contains subscriber-only lessons
Explore free tracks in this area of study, or subscribe for full access.
Browse available tracks"Multi-Entity Exits, MBOs & Recapitalization Strategies" is a Pro track
Upgrade to access all lessons in this track and the entire curriculum.
Test Your Knowledge
1.What is the combined valuation discount range typically available for lack of marketability and lack of control in family transfers?
2.Why is a sale to an IDGT a non-event for income tax purposes?
3.According to the IRS clawback regulations, what happens to gifts made under the higher exemption if the exemption later decreases?