Pit & Quarry, September 2012
Developing a succession plan is a multi phase process outlining in detail the who what when why and how changes in ownership and management of the aggregates business are to be executed At a minimum a good plan should help accomplish the following Transfer control according to the wishes of the operations owner shareholder or partner Carry out the succession of the business in an orderly fashion Minimize the tax liability of all involved Provide economic well being after the owner partner or shareholder steps aside Obviously business owners seeking a smooth and equitable transition of their interests should seek competent experienced advisors to assist them in this matter But no matter how talented and earnest those professional advisors are their limited specialties should In 2013 the death tax will revert to its antiquated pre 2001 form The applicable exclusion amount will plummet to 1 million and the top marginal rate will leap 20 points to 55 percent never dictate the choices for the business or the owner shareholder or partners family A tax lawyer can make compelling arguments for strategies that can minimize estate and gift taxes Likewise a certified public accountant CPA can be very convincing when suggesting strategies for controlling income taxes And it is a similar story with financial planning and insurance professionals But the fact remains Tax planning should never control any business decisions First determine the result desired and then let the professionals find the most tax efficient way to achieve that result Finally succession planning isnt something that can done once and forgotten To be complete and effective a succession plan must be continuously revisited reviewed and updated to reflect changes in the value of the aggregates operation the market conditions and the health of the owner shareholder or partner as well as the abilities and passion of the people to whom it will be passed PQ Mark E Battersby is a freelance writer who has specialized in taxes and fnance for the last 25 years Business Finance Italvibras The global standard for industrial electric vibrators Italvibras has engineered manufactured and delivered their industrial electric vibrators to the North American market since 1975 Introducing the new Series VU linear motion mechanical vibrators Italvibras USA 1940 Vans Way Princeton IL 61356 Now we are putting our name on it Italvibras the global leader in industrial electric vibrators since 1959 Come and visit us at our new Distribution and Service Center in Princeton IL or at www italvibrasusa com LARGEST INVENTORY phone 815 872 1350 fax 866 337 2693 www italvibrasusa com 72 PiT QuaRRY september 2012 www pitandquarry com
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