Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: February 22, 2013
The Firm
201-896-4100 info@sh-law.comWhen it comes to dividing up an estate among heirs, many affluent individuals and business owners balk at leaving one child more assets, cash, or property than their other children for fear that it will cause sibling rivalry. However, when business interests or family heirlooms are involved, this may be the best policy.
Changes to the estate tax law allow individuals to leave $5.25 million – or $10.5 million for married couples filing jointly – to heirs in 2013, up from $5.12 million in 2012. The gift tax exclusion also increased to $14,000 for singles and $28,000 for couples, compared to 2012 limits of $13,000 and $26,000, respectively. As business owners may now transfer larger portions of their estates to heirs without triggering a tax, it’s important to make objective, rather than emotional, decisions regarding wealth transfers, according to recent article in the Pittsburgh Post-Gazette.
Many business owners hand down family assets in an effort to further their legacy and continue to build wealth for future generations. Splitting up assets evenly among several children can lead to family squabbles about how to manage assets, a scenario that could eventually diminish wealth. In addition, those who have different ideas about how to run the company or simply want no stake in it at all could sell their shares or make other decisions that impact a company’s future.
For these reasons, business owners are advised to take the competency and future goals of each heir into consideration before handing over a sizable portion of the estate. If one member is better suited to handle day-to-day operations than another, splitting assets evenly may not be a smart move. In addition, working with an estate attorney to create trusts designed to keep assets within the family is another move that may prevent heirs from selling off or jeopardizing a company’s future.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!