Without Proper Estate Planning, the Heirs to a Successful Business

question 28

True/False

Without proper estate planning, the heirs to a successful business may be required to sell it just to pay the estate tax bill.

---

Definitions:

Markup

The uplift in the purchase price of items specifically to recover operational overhead and to make a profit.

Split-off Point

The stage in a production process where multiple products are derived from a single process or material, leading to separate further processing.

Joint Production Costs

Costs incurred in the process of producing two or more products simultaneously from the same raw materials or process.

Split-off Point

Refers to the stage in a production process where joint products can be recognized as separate products.