Business Succession Planning

An Exit Strategy for You and the Company

When you’re ready to arrange your Business Succession Plan, we will help strategize a plan that can include:

• • Reducing Estate and Income Taxes 
  • Planning Retirement Income for You
  • Protecting all Assetss
  • Protecting the Business

It’s essential to invest time into planning and developing a strategy before you’re ready to change ownership. This will help maintain the company’s success and guarantee that the company is prepared for any unexpected events.

Business Succession Plans

A successful Business Succession Plan benefits both you and the business. We will help you address any potential problems (death, disability, disagreements between business owners) during this time. To prepare a successful plan, we will help you to: 

• • Determine the Value of the Business
  • Identify Future Owners and Managers
  • Maintain Loyalty of Key Employees with Company Incentives
  • Ensure Fair Treatment of Family Members in the Business

Assets Exempt from Inheritance Tax

As mentioned above, there are certain exceptions to taxes on some assets and property. Exceptions include:

• • IRA accounts if the individual who died hasn’t reached the age of 59 ½
  • Life insurance proceeds paid to a beneficiary

Filing a PA Inheritance Tax Return

If you’re filing a PA Inheritance Tax return, you’ll need to complete a REV-1500 form provided by the PA Department of Revenue (an instructional guide on completing the REV-1500 is available). As the personal representative, you’ll have nine months from the deceased person’s date of death to file and pay the Inheritance Tax return. If you miss the deadline, there is a 25% tax penalty or $1,000 (whichever amount is less).

5% Discount Option

If you prepay the Inheritance Tax within three months of the person’s death, you receive a 5% tax discount on the tax due.