Control Premiums, Explained: Why 51% of a Company Is Worth More Than 51% of Its Value
A 51% stake commands a 20–40% control premium over pro-rata value, pricing the power to set dividends, strategy, and sale timing.
#estate-planning
Estate Planning
Tax-efficient strategies for transferring wealth and business assets to the next generation
Fair Value vs. Fair Market Value: Why Your Business Has Two Different Numbers
Fair market value is the IRS willing-buyer price with minority discounts; GAAP fair value is the undiscounted exit price in your principal market.
Transfer on Death, Explained: How TOD Deeds, POD Accounts, and TOD Securities Bypass Probate
TOD and POD designations move bank accounts, brokerage holdings, and real estate to your beneficiary without probate — but creditors and taxes still apply.
The Divorce Financial Checklist: What to Gather, Inventory, Freeze, and Retitle Before You File
Gather tax returns, statements, and business records before filing — then freeze joint credit, split the 401(k) by QDRO, and update beneficiaries.
Revocable vs. Irrevocable Trusts: What Really Changes When You Give Up the Power to Amend
A revocable trust avoids probate but stays in your Federal taxable estate; an irrevocable trust removes assets from it — at the price of control.
Testamentary Trusts, Explained: The Trust Inside Your Will That Protects Minor Children and Spendthrift Heirs
A testamentary trust springs from your US will after probate — it staggers inheritances for minors but can't skip probate like a living trust.
Will vs. Living Trust for Business Owners: Probate Costs, Privacy, Incapacity Planning, and Guardians
Probate takes ~16 months and 3-8% of the estate; a funded living trust skips both. How owners should weigh cost, privacy, incapacity, and guardians.
BDITs, Explained: How to Control Inherited Assets Without Owning Them for Estate Tax
A BDIT makes you the income-tax owner of assets you don't own for estate tax under Section 678 — sell to it, keep control, freeze your estate.
Spendthrift vs. Discretionary vs. Support Trusts: Which One Actually Protects the Inheritance
Under US trust law, a discretionary trust plus a spendthrift clause blocks most creditors; a support trust's HEMS payments can be reached.
Fiduciary Accounting Income, Explained: How Trustees Split Principal From Income
Fiduciary accounting income, not taxable income, sets trust distributions — dividends and rent to the income beneficiary, capital gains to principal.
Minority Discounts, Explained: Why Your 30% Stake Isn't Worth 30% of the Company
A 30% private stake typically sells 30–40% below pro-rata value: a DLOC for missing control plus a 20–35% DLOM for illiquidity, compounded.
Per Stirpes vs. Per Capita: How One Latin Phrase Decides Whether Your Grandchildren Inherit
Per stirpes routes a deceased beneficiary's share to their descendants; per capita gives it to the surviving beneficiaries instead.