estate planning and esops

[Guest Angie Horn]

What are the estate plannign benefits of starting an esop for a company? Also, are there any income tax beenfits to starting an esop and giving up approxiamtely 20% of corporate securities to key employees by an owner who owns 100% of the corp? Will it lower taxabel income?

[Bruce Steiner]

The estate planning advantage of an ESOP is that it lets the controlling shareholder(s) sell some of their shares and diversify without having to pay capital gains taxes, while continuing to control the company.

This is a complicated area, and if this involves a specific case you should consult with competent tax/estates counsel.

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Bruce Steiner, attorney

(212) 986-6000 (NY office)

(201) 862-1080 (NJ office)

also admitted in FL