Subscribe to Entrepreneur for $5
Subscribe

Giving Stock to the Next Generation

Are you gifting stock to the younger generation for the right reasons?

By
This story appears in the October 2000 issue of Entrepreneur. Subscribe »

The younger generation is eager to get stock in the family business, but the older generation is reluctant to give it up. How does this impasse get resolved?

Estate-planning experts suggest gifting stock from one generation to another in family businesses be done often and early. "It makes sense to give stock away to your successors when its value is low-assuming you have a growing company and expect the stock to increase in value," says Ross Nager, executive director of the Arthur Andersen Center for Family Business in Houston and co-author of The Family Business Answer Book(Prentice Hall). "That's because gift tax consequences are based on the fair market value of the stock at the time it's given."

Continue Reading This Article—And Everything on Entrepreneur!

Become a member to get unlimited access to Entrepreneur.com for less than $1 per week* and support the voices you want to hear more from.*Billed annually at $49/year. Cancel anytime.