Transferring a PA Family Business
By Sean Quinlan, Esq. · Updated January 15, 2025
Transferring a family business to the next generation involves coordinating gift tax, income tax, PA inheritance tax, and the family's cash-flow needs.
Voting/non-voting split
Founder retains voting shares for control while gifting non-voting shares to children at a valuation discount.
Sales to IDGTs
Installment sale to an Intentionally Defective Grantor Trust freezes value with no income tax recognition.
GRATs
Grantor Retained Annuity Trusts transfer appreciation to children with minimal gift-tax cost.
PA exemption
Plan with the § 9111(t) family business exemption — 7-year holding requirement and family-only recipients.
This article is general information about Pennsylvania law as of the update date above. It is not legal advice for your situation and does not create an attorney-client relationship. For advice on your specific facts, please schedule a consultation.
Talk with a Pennsylvania estate planning attorney.
Most plans take two meetings. The first is a consultation — clear, honest, and free of pressure.