Legal Question in Business Law in New York

Re: shares in a company

Whether you leave your son the specific bequest of the shares of stock in your will or transfer those shares to him while you're alive may be a question with serious tax ramifications for you and for him. You should consult with a CPA or tax attorney who is familiar with your financial situation to determine which course of action would be most advantageous to you and to him (but mostly to you). This question is far too fact-dependent to be answered on this general-information board.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Re: shares in a company

There are certain tax ramifications for giving a company to a son. Normally in a small business plan is put in place allowing for the transition. The plan accounts for the value of the company, the age of the parties, the intent of the parties - full or partial retirement, and the effect of the transfer on any other siblings. A lawyer and accountant should therefore be consulted.

Mike.

Re: shares in a company

If you transfer the stocks while you are alive, this will put an end to any estate fight over the inheritance of the company.

The transfer does not take place in the by-laws. What is transferred is the stock of the corporation which can take place by the signing over of the stock while you are alive, or by the will. There could be a separate agreement concerning the death of a stockholder.

Before you make a decision, you should be aware of tax consequences, and inheritance tax problems. It is not a question which can be answered yes or no. There are many questions which must first be answered.

Whatever you decide, it should be decided now. Otherwise death and the state will make those decisions for you.

If you need further assistance, or would like to discuss the matter in person, please feel free to contact me.