Date: Thursday, August 23rd from 1:00 PM - 2:30 PM
Session Code: BMG20
Presented by: Resnick Associates
• Terrance Resnick, Partner: Resnick Associates
The educational seminars presented by Resnick Associates focus on the areas of business succession, estate planning and liquidity issues for the privately held business owner so that he or she will be able to pass the business to the next generation or other successors and avoid the traps that snare even the most successful business owners.
Closely held businesses, particularly those that are family owned, face an extremely difficult task in surviving to the second generation. In fact, less than one-third of all family businesses makes it to the second generation and less than fifteen percent of those makes it to the third generation!
Some of the reasons for this startling statistic are the following:
- No business succession and estate plan was ever developed or plans that were implemented proved to be ineffective. Most business owners do not have a comprehensive understanding of the planning in place.
- Not enough liquidity to pay Federal Estate Taxes. Estate taxes can easily confiscate over 50% of a business owner's estate. These taxes must be paid in cash within 9 months of the date of death. If cash is not available, assets are often sold to raise the money. Unfortunately, this may include the sale of the business!
- An already existing business succession /estate plan may never have been updated to conform to changes in the tax code and/or family situations.
- Unable to determine how to treat children who are not active in the business. Does it make sense to leave part of the business to them?
- Not working with professionals who specialize exclusively in business succession and estate planning. All professionals (attorney, CPA, life insurance expert) should be specialists.
- Improperly arranged life insurance. Too often business owners utilize insurance for the purpose of providing liquidity, only to end up having the proceeds taxed or lost entirely. This results in an unexpected shortfall of cash when it is crucially needed.
Terry has provided his educational seminars to a large number of business organizations throughout the United States.
These organizations include concentrations in the following industries: aggregates, architectural metal manufacturers, asphalt, association executives, beer, building contractors, building materials, boiler manufacturers, bus, campground, commercial food equipment service, confectionery, construction, cooling, corrugated packaging, distributors (many industries), electrical contractors, heating, heavy duty truck parts, highway contractors, home builders, lumber, mechanical contractors, movers, outdoor advertising, paper merchants, petroleum, plumbing, precast concrete, printing, ready mix concrete, rental, restaurant, retail bakery, retail clothing, road builders, roofing, sheet metal, siding, signage, soft drink, steel, tile, tire, timber framers, timber producers, tortilla, travel plazas, turfgrass, and trucking.
Resnick Associates has published many articles in business magazines, newspapers, and trade journals on the topics of estate, business succession, and life insurance planning, including a feature article for Nation's Business, at that time, the largest circulated business magazine in the country. Resnick Associates was also featured in Nation’s Business, as well as in the book, Streetwise Marketing Plan. In addition, other national and regional publications have featured the firm regarding their work and commitment to their clients. The Kansas City Star and Kansas City Business Journal published articles written by Resnick Associates in conjunction with a Senior Correspondent from Business Week regarding the proposed federal estate tax repeal. The firm has also been sought out to comment and write about current and impending estate tax legislation and how it may affect closely held and family business owners.
Resnick Associates is a co-founder of the Elizabethtown College Family Business Center in Elizabethtown, Pennsylvania, one of the largest college based family business centers in the United States.