Word: messervey
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...most important missing ingredient is usually a strategy. "An entrepreneur needs to figure out years in advance to whom in the family a business will be passed down and why--a major decision that can have so many mixed emotions and feelings attached to it," Messervey says. "Had we known my brothers' feelings more about the business, we might have avoided having their feelings hurt," says Marshall-Chapman. "These are very sensitive issues for families...
...business stays in a family, the harder this becomes. Companies passed on from the first to the second generation have a 40% chance of surviving, second to third generation have a 15% survival rate, and the number dwindles down to 1% from third to fourth generation, says John Messervey, principal consultant with the National Family Business Council, a consulting-and-research group in Lake Forest, Ill. Compounding all this is the fact that as many as 25% of senior family-business shareholders do not complete any estate planning other than writing a will, according to the Family Firm Institute www.ffi.org...
...continuing income. Parents can receive compensation as advisers or consultants, with a set salary or retainer, notes Diahann Lassus, co-owner of Lassus Wherley & Associates, a New Providence, N.J., financial-planning firm. Or parents can lease the site of the business to the children and get a rent check, Messervey says. In some cases, children may choose to give their parents a share of profits or an annuity...
...lower the tax burden of succession is by gifting shares of stock over a period of years to the next generation. If the business is going to remain in the family and has a sizable worth, gifting should be done over as long a time as possible, Messervey says. A maximum of $10,000 in stock may be passed down annually to each child by an individual. Currently there is a lifetime exemption of $675,000 for tax-free gifts. Any offspring who is not going to be involved in the business can still receive a minority interest and nonvoting...
| 1 |