New York Franchisee Succession Planning
New York franchisees interested in succession planning must be made aware of the effect a lifetime transfer of a business has on estate planning.
Federal & New York Gift Tax Law Transfers without consideration during one’s lifetime are considered gifts under federal and New York tax law. From an estate tax perspective, gifts reduce the estate tax threshold of the person making the gift and after death, that person’s estate would have to pay taxes on the amount of the estate that exceeds the estate tax threshold. However, with advanced preparation, a franchisee interested in succession planning can implement a plan to minimize the tax burden of the transaction.
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