Business Succession Planning in Austin, Texas

For business owners, estate planning goes beyond personal assets. Without a thoughtful succession plan, a family business can face forced sales, destructive family disputes, or crippling estate taxes at the owner's death. The business succession attorneys at Cowan & Associates, PLLC help Austin entrepreneurs plan for a smooth, tax-efficient business transition.

Why Business Succession Planning Matters

Studies consistently show that the majority of family businesses don't survive the transition to the second generation — often due to a lack of planning rather than lack of desire. Succession planning addresses ownership transfer, management transition, estate tax exposure, and family equity all at once.

Our Business Succession Services

• Buy-sell agreements (cross-purchase and entity redemption)
• Family limited partnerships (FLPs) for valuation discounting
• Grantor Retained Annuity Trusts (GRATs) for business interests
• Installment sales to intentionally defective grantor trusts (IDGTs)
• Employee Stock Ownership Plans (ESOPs) — coordination and planning
• Sale or gift of business interests to family members
• Operating agreements and partnership agreement review
• Key person life insurance integration

The Buy-Sell Agreement

A properly drafted buy-sell agreement is essential for any business with multiple owners. It establishes what happens to a deceased owner's interest, how the business is valued, and how the surviving owners fund the buyout — typically through life insurance. Without one, a deceased owner's heirs may become unwanted business partners.

Valuation Strategies

Business interests transferred at death or by gift are subject to valuation for estate and gift tax purposes. Family limited partnerships and other structures can create legitimate valuation discounts for lack of marketability and lack of control, reducing the taxable value of business interests.

Coordinating Business and Personal Estate Plans

Your business succession plan and personal estate plan must work together seamlessly. We design integrated plans that address both your business and personal assets, ensuring a cohesive strategy that minimizes taxes and achieves your goals.