Business Succession Planning

Free CFP Exam lesson in Retirement Savings and Income Planning. 15 min read, ~2,217 words.

Cross-purchase agreements give surviving owners a cost-basis step-up but require n(n-1) policies (five owners need 5(5-1) = 20). Entity-purchase agreements need only n policies but provide no basis step-up. ESOPs allow Section 1042 capital gains deferral: C corporation stock only, 30% ESOP ownership minimum, with a qualified replacement property purchase...