Estate Planning Strategies for Business Transfer

Medium Private Wealth Management Estate Planning

Lucas, a 45-year-old business executive, is currently evaluating his estate planning options. He has significant investments in real estate and stocks, coupled with a family-owned business that has been running for over 20 years. Lucas is married and has two children in their early teens. He is particularly concerned about the efficient transfer of his assets to minimize tax implications and ensure that his family is supported. As part of his estate planning process, Lucas is considering various strategies, including the establishment of a trust and passing on his business to his children.

Which of the following estate planning strategies should Lucas prioritize to ensure a smooth transfer of his family business while minimizing potential estate taxes?

Establishing a revocable living trust to manage the family business and assets during and after Lucas's lifetime.

Transferring ownership of the family business to his children immediately to avoid estate taxes.

Creating a charitable remainder trust to benefit charities while allowing for income during his lifetime.

Hint

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