As I’m now in my full return to the Non Profit space a very large component of my job load is to go into the community and share with trusted advisors and business owners the opportunities that lie within their reach to truly make a difference in their own lives as well as the lives of those in their communities, through planned legacy giving structures. When a business owner sells a business that they have a low cost basis in they will inevitably incur large capital gains tax consequences, or they can use 1031 exchange programs to delay the inevitable or maybe they will use another tax strategy that can spread that gain out over years to minimize the tax burden for each annual period, but in what other ways can they do good by the way of their family, and the causes that they care about, while easing the tax burden they will potentially owe.
I think these are great questions that any socially conscious business owner should be asking themselves and their advisor teams. But the biggest impact is made prior to the sale transaction, not after.
One modern day business legend that has figured out the concept of legacy planning is David Green of Hobby Lobby. Can you imagine this… he started with less than $1,000 and now his empire is worth over $4 Billion. He has a new book coming out in Late April that speaks to the concept of giving your wealth away. I’m not going to go into the details but this is going to be a must read for anyone who is considering developing a solid exit plan that benefits the family, the causes they care about, and minimizes the affectual tax amount owed on a wealth transfer. Look for Davids book on April 25th everywhere books are sold.
Then if you have questions concerning this concept reach out and we will be happy to introduce you to our friends who are experts in the creation of these types of legacy strategies. They would be happy to meet with you and your trusted advisory team to discuss the process and share insight from their decades of proven success in the giving space.
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