`Tis the Season for Estate Tax Planning

By Ray Carter The Journal Record | THE JOURNAL RECORD, December 26, 2000 | Go to article overview

`Tis the Season for Estate Tax Planning


Ray Carter The Journal Record, THE JOURNAL RECORD


It's the holiday season, a time for family togetherness, Christmas cheer and succession planning?

While it's not exactly a Norman Rockwell moment, financial officials say any time the whole family comes together provides an opportunity for business owners -- with an eye towards the looming tax season -- to make plans that will lessen the impact of the estate tax on their heirs.

The first step in that process is naming a successor. But that's not as easy as it sounds.

"They've got to think in terms of `who is the best person to succeed us in running the business?'" said Ben Byers, manager of Bank of Oklahoma's Personal Trust Department in Oklahoma City.

"Is it the oldest son? Is it the smartest son or son-in-law or daughter? Or what do you do with the people, with the kids that are running the business, involved in the business, and those who aren't? And how do you be fair about that? So succession planning forces some business owners to face some pretty challenging questions."

Those tough questions make many business owners reluctant to approach the topic.

"They postpone making those decisions because they don't want to hurt the feelings of one of the other children," said James R. Dickson, president of BancTrust, the trust and investment management division of BancFirst.

The fact that the topic is also associated with one's demise carries a psychological weight that causes many business owners to procrastinate. As a result, many entrepreneurs put off until tomorrow the business planning they should have done today. And that's a big mistake, Dickson said.

"Maybe they have a child, but in the back of their mind they think that child really hasn't shown an interest in coming into the business, but yet they're afraid to say that to their child and they just don't do anything," Dickson said. "And then what happens is they pass away and there may be substantial estate tax that is due and (the children) have to liquidate the business just to pay the estate tax. Everybody loses in that situation."

The issue of succession is a common problem that financial experts have to deal with when they first meet with a client.

"A lot of times business owners haven't made the kinds of decisions that they need to make on the succession planning side so you kind of end up looping back into it," Byers said.

He pointed out that the decision to name an heir isn't set in concrete and can be altered as circumstances dictate.

"The succession planning is something you need to be on top of as you go. And that will change," Byers said. "Because there could be a clear heir apparent to a company and they may decide that `I just don't want to do this anymore,' or you could have a medical problem.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

`Tis the Season for Estate Tax Planning
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.