Drive Your Dealership into the Future: Estate Planning Considerations for Auto Dealers in Light of the One Big Beautiful Bill Act
Private Wealth Services attorney Shaina Kamen authored an article for the National Association of Dealer Counsel's (NADC) Defender newsletter about tax provisions in the One Big Beautiful Bill Act (OBBA) that affect business succession planning for auto dealers. Auto dealerships typically either pass to the next generation or are sold to third parties prior to the owner's death, and part of the estate planning process involves deciding which path to take. Ms. Kamen's article outlines significant changes to tax laws enacted as part of the OBBBA that can influence this process, such as higher estate, gift and generation-skipping transfer tax exemptions. She also highlights amended rules on Qualified Small Business Stock (QSBS) that make it easier for shareholders to sell their stock while minimizing capital gains. Finally, she mentions employee stock ownership plans (ESOPs), which, although not directly referenced in the legislation, can prove a viable option for auto dealers. The piece articulates helpful insights for auto dealership owners as they take steps to implement succession planning and set their business up for long-term profitability.