Preparing to Become the Next Generation. Presented by: William E. Roberts, CLU, ChFC AUCTORIS May 14, 2014 . Farm and Ranch Statistics. USDA 1999 Agricultural Economics and Land Ownership Survey revealed: Close to 50% of farm and ranch owners were 65 or older
the Next Generation
William E. Roberts, CLU, ChFC
May 14, 2014
USDA 1999 Agricultural Economics and Land Ownership Survey revealed:
USDA 2010 economic survey revealed:
Of 500 Family Businesses surveyed:
Based on two studies of The Williams Group.
Study #1 – Interviews by The Williams Group of 2,500 families who had transferred wealth, were in the process or had done nothing. Research confirmed 70% failure rate and identified causes of the failures, even among families who only owned investable assets.
Study #2 – Research on 750 families conducted by The Williams Group and Michael Morris at the Family Business Institute at the University of Oklahoma. Research supported the 70% failure and the causes of the failures.
Conclusion – Whether a family owns a operating business or is in the business of managing its assets, the failure rate is the same.
Family Conflict Issues“Relationship issues are the biggest liability a family business faces”. -Joe Paul, Partner, Aspen Family Business Group
“Happiness is having a large, loving, caring, close-knit family…in another State”.
– George Burns
siblings and their family:
Paid to C-Corp
as policy owner
Sale of Shares
Owner A's Estate
Owner's B & C keep
their same basis since
C-Corp buys Owner A's
Stock Redemption Issues
1. Death Benefit paid to C-Corp may trigger AMT
2. No Increase in Basis to surviving ownersBuy-Sell Agreement
Added Tax Cost family
Added ObamaCare Tax Cost (3.8%)
Current Corporate Structure family
All Business Units Under One C-Corporation
C-Corp family to S-Corp
Howis the estatetaxfunded??
Issues to be considered
A Plan to Pay the Estate Tax
“The definition of crazy and impossible is doing the same thing over and over again and expecting different results!”
- Albert Einstein
Why do 90% Fail?
Manage & Use Wealth
High Self Esteem
Building Trust, Communication & Team Through “Meaningful Experiences”
All Leading to – Healthy Family Group Governance; Able to Manage Entities and Trust Structures
Wealth Used Inefficiently & Wasted
Low Self Esteem
All Leading to – Unhealthy Divided Governance
Wealth Transition Checklist