Family Business Succession Planning
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​Preserve Control. Protect Wealth. Pass the Business on Your Terms
Transferring a family business to the next generation can be one of the most rewarding—and most challenging—transitions a business owner faces. The goal is to reward decades of work, secure your retirement, and set your children up for long-term success—without jeopardizing the business or your financial future.
At Oakwood Summit, we help families achieve this with a Cash Balance Plan–based succession strategy that creates a structured, tax-advantaged buyout—one that benefits both generations.
The Challenge with Family Buyouts
Typical business succession plans come with serious drawbacks. In many cases, this creates financial and emotional strain on both sides—and puts the family business at risk.
The next generation must borrow heavily to buy out the parents, creating years of debt service.
The older generation must relinquish ownership early, trusting that the children will manage the business successfully.
Payments made through installment sales, expose the retiring owner to risk if the business falters.
The Tax Deductible Business Succession Solution​
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This strategy is designed to be a win win solution for the retiring & new owners. Here’s how it works:
Why This Strategy Works
This approach is powerful because it addresses the key risks in traditional succession planning:
Retain Control Until Proven Success
Tax-Deductible Buyout Contributions
Secure Retirement for the Senior Owner
Retain Key Employees
Debt-Free Transition for the Next Generation
Performance-Based Ownership Transfer
The senior owner keeps ownership throughout the transition, providing oversight and mentorship while ensuring the next generation can run the business profitably.
All contributions made by the business into the senior owner’s retirement plan are 100% tax-deductible, turning what would have been taxable buyout payments into retirement savings and tax savings simultaneously.
The retiring owner’s buyout value is accumulated inside a guaranteed retirement plan, insulated from business risk, market volatility, or future payment defaults.
Junior owners have the opportunity to build trust among key employees during the transition phase ensuring a stable work force after the senior owner retires.
The children don’t need to take on a large loan or face years of debt service. The business funds the buyout gradually and sustainably through retirement plan contributions.
If the children fail to meet performance or financial expectations, the senior owner retains control, protecting both the business and the family legacy.
A Win-Win for the Entire Family
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The older generation secures a guaranteed, tax-advantaged retirement income while retaining control during the transition.
The younger generation earns ownership gradually—through demonstrated performance, not borrowed money.
The business itself benefits from large, tax-deductible contributions that strengthen cash flow management and stability.
This structure transforms succession from a one-time financial transaction into a long-term, tax-efficient wealth transfer plan.
Our Role at Oakwood Summit
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At Oakwood Summit, we specialize in designing tax deductible family business transition plans. Our team works with your CPA, attorney, and financial advisor to ensure every element—from valuation and structure to compliance and tax treatment—is handled seamlessly.
We guide both generations through:
Business valuation and plan design
Business transition plan implementation
Transition and mentorship structure
Legal and tax coordination
Ownership transfer and retirement payout strategy
Preserve Your Legacy—The Smart Way
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You’ve worked a lifetime to build your business. Don’t let poor planning or risky financing jeopardize what you’ve created. With the right structure, you can mentor your successors, protect your retirement, and pass the business with confidence—all while reducing taxes along the way.
Schedule a Family Business Succession Consultation
Learn how to structure your business transition using a Cash Balance Plan that benefits both generations.