Succession Planning

Planning for the transfer of a business is one of the most challenging issues that a business owner can face. Our business succession planning solutions enable clients to accomplish their business goals using targeted strategies that reduce tax costs and inefficiencies.

Frank Leffingwell & Associates, PC helps closely-held business and real estate owners plan for succession through various services, including:

  • Insurance-funded buy-sell agreements
  • Insurance-funded deferred compensation agreements
  • Key man insurance planning
  • Employee stock ownership plans (ESOPs)
  • Management buy-ins and buy-outs
  • Equity incentive plans
  • Charitable trusts
  • Reorganizations
  • Gifting programs and strategies

Representative Transactions:

  • Prepared, formed, and funded intentionally defective grantor trusts with ownership interests in the grantor’s closely held business, resulting in continuity of management and estimated estate tax savings for the client in excess of $10,000,000;
  • Structured and completed an intra-family purchase and sale of a large chain of dry-cleaning stores for a net purchase price in excess of $6,000,000;
  • Advised on and structured the executive succession plan for a local software company, including putting into place key-man life insurance to provide for the company’s cash flow needs in the event of the death of the company’s chief executive officer and founder;
  • Structured and provided advice with respect to the wind-down and termination of a prominent general contractor business in the Central Texas area;
  • Structured and created a voting and management trust for a prominent local businessman, allowing the businessman assurance that a trusted executive would manage the business while preserving economic benefit for the client’s descendants; and
  • Negotiated, structured, and completed the buy-out of a partner in a prominent Central Texas heating and air conditioning business.