The three most important objectives of estate planning for owners of closely held businesses are as follows:

1. Providing liquidity, either for themselves, their heirs, or both
2. Minimizing federal gift and estate taxes and state inheritance taxes
3. Ensuring business continuity

Referral sources for engagements related to this type of BV service are mainly through CPAs involved with filing IRS Forms 706 or 709 for estate or gift tax planning purposes, respectively. Attorneys specializing in estates, insurance advisers, investment advisers, and trust officers are also involved in this type of service. It is important that you focus on as many of the specialists in these areas as possible because the business owners are usually close to or seek the counsel of their advisers and may not otherwise be familiar with your services.

© AICPA