Aligning tax planning, estate planning, succession planning, and liquidity strategies before a major business transition
Business owners we support at First American Bank often rely on a team of trusted advisors, including CPAs, attorneys, wealth advisors, bankers, and insurance professionals. While each may provide excellent guidance, those recommendations don’t always work together seamlessly.
In practice, a business owner’s company strategy and personal wealth strategy are deeply interconnected. Decisions about a business sale, succession plan, liquidity event, or estate strategy can create ripple effects across taxes, cash flow, family planning, and long-term wealth preservation. Yet according to J.P. Morgan’s 2026 Global Family Office Report, 86% of global family offices still lack clear succession plans for key decision-makers, highlighting how common it is for planning gaps to persist even among sophisticated families.
Why Coordinated Planning Matters For Business Owners
Coordinated wealth planning brings a business owner’s advisory team together around a shared strategy. The goal is alignment across tax planning, estate planning, succession planning, liquidity management, and long-term family objectives before major decisions are made.
This coordination is becoming increasingly important as both family and business wealth grow more complex. As research from EY reveals, 45% of investors report that their financial needs have become more complex, and many are seeking more holistic guidance and more frequent advisor interaction. When advisors communicate early, business owners gain greater flexibility to manage taxes, preserve liquidity, and prepare for future transitions with fewer surprises.
The Cost of Siloed Advice
A business owner preparing for a future business sale may already have strong advisors in place. One may focus on minimizing taxes, another on liquidity needs, and another on estate or succession planning. Each recommendation may be sound on its own. However, without coordination, the overall outcome may fall short of the owner’s goals.
The result can be unintended tax exposure, liquidity challenges, succession planning gaps, or estate plans that no longer reflect the owner’s intentions. As Carrie M. Buddingh, an Estate Planning Attorney and Partner at Momkus, LLP notes, “Each person on the ‘team’ (e.g., the advisor, CPA, attorney, etc.) brings his or her unique approach, experiences, and expertise to achieve the client’s goals. However, to truly attain the best results for the client, it is vital for the ‘team’ to come together and exchange their perspectives to determine ultimately the best path moving forward for the client holistically.”
A Three-Step Succession Planning Checklist for Business Owners
1. Identify the lead advisor
Determine who is your wealth advisor or relationship manager responsible for coordinating the overall strategy and keeping the advisory team aligned.
2. Bring the team together early
Ensure that your CPA, attorney, banker, wealth advisor, and insurance professional are discussing tax planning, succession planning, liquidity needs, and family objectives before a transaction is underway.
3. Revisit the plan after major changes
A business sale, ownership change, acquisition, recapitalization, or significant increase in wealth may require updates to estate planning documents, succession plans, and investment strategies.
Build the Team Before the Transition
The most effective business succession plans are built before urgency takes over. Once a business sale, leadership transition, or liquidity event is already in motion, options often become more limited and decisions become more reactive. Business owners who coordinate tax, estate, succession, and personal wealth planning early are better positioned to preserve family wealth and support long-term business continuity.
Get in touch to learn more about how First American Bank works alongside trusted advisors to help align priorities and support a coordinated plan for the business, the family, and the future.
