I ♥ ESOPs #055

An employee stock ownership plan (ESOP) is a tax-advantaged succession-planning vehicle and retirement plan that’s sometimes overlooked. Guest Cara Benningfield joins host Damien Martin to explain how ESOPs can help preserve the culture and legacy of a business and discuss the pros, cons and risks of an ESOP transaction. TIME STAMPS OF WHAT’S COVERED Leveraged ESOPs @1:48 Contributory ESOPs @3:41 How ESOPs work @5:28 Where to start when evaluating an ESOP transaction @10:56 Situations where an ESOP isn’t a good fit @12:36 Benefits of an ESOP @15:46 Gain deferral under §1042 @22:15 Situations where ESOPs are particularly effective @29:24 ESOPs after tax reform @32:14 Common ESOP myths @42:47 A practical example of an ESOP success @45:48 Figure out what’s important @51:20 It takes a team @52:48 BIO FOR GUEST Cara Benningfield is a partner in BKD’s Bowling Green, Kentucky practice and leader of BKD ESOP Transaction Services Group. She structures and facilitates the creation of new ESOPs and works with existing ESOPs in matters ranging from acquisition structuring to repurchase planning and analysis. Cara’s experience with ESOPs also includes providing financing assistance, tax planning, ongoing plan administration, employee communication and structuring of executive incentive plans. Connect with Cara on LinkedIn ADDITIONAL RESOURCES Bonus Discussion: Why Cara Benningfield ♥s ESOPs Video: Impacts of Tax Reform on ESOP Companies Webinar archive: ESOPs: Continuing a Legacy Articles: The Effect of Tax Reform on ESOPs 2018 ESOP Economic Performance Report Survey Results Released 100 Percent ESOP – The First Six Months After Implementation ESOPs: Accounting for the Repurchase Obligation on Your Financial Statements   GET MORE “SIMPLY TAX” A complete archive of our episodes is available on our website and YouTube playlist. We’d love to hear from you! Email feedback and questions to [email protected]. Connect with Damien on social media! LinkedIn | Twitter | Instagram