Consider the ESOPConsider the ESOP
In business succession and estate planning involving a closely held business, employee stock ownership plans (ESOPs) should be one of the prime planning alternatives considered. Unfortunately, they rarely are. That's probably because ESOPs are very complicated. The tax-oriented inducements incorporated into the law are tantalizing. But, to ensure that they're not abused, they're designed to be finite
August 1, 2009
Louis H. Diamond is the managing member of Diamond ESOP Advisors PLLC in Washington
In business succession and estate planning involving a closely held business, employee stock ownership plans (ESOPs) should be one of the prime planning alternatives considered.
Unfortunately, they rarely are.
That's probably because ESOPs are very complicated. The tax-oriented inducements incorporated into the law are tantalizing. But, to ensure that they're not abused, they're designed to be finite and restrictive. Many rules are involved; deviation from the letter of these laws can result in dire consequences. Still, Congress, the Department of Treasury and the Internal Revenue Service have provided guidance, and even safe harbors,...
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