This session will review the estate planning opportunities that are available to business owners who are undergoing an ESOP transaction. These opportunities stem from

Learning Objectives

1) the capital gains tax deferral offered by Internal Revenue Code section 1042;

2) the unique effect of an ESOP on the value of retained stock ownership; and

3) the structure of the proceeds received after the sale of a company to an ESOP. Some of the opportunities that arise from these circumstances include

A step up in basis, achievable through investment in QRP • Transferring retained ownership to a family limited partnership (FLP) or limited liability corporation (LLC) at a valuation discount • Philanthropic planning with QRP • Transfer techniques that can be used in conjunction with seller notes and warrants