Worcester Business Journal

wbjournal.com | September 8, 2025 | Worcester Business Journal 19 By Harrison Klein Harrison Klein is managing director, investments at the Boston office of California-based Marcus & Millichap. He leads The Klein Group, focusing on industrial, office and adaptive reuse opportunities in New England. 5) Be your own tenant by purchasing a building and leasing it to your operating company. For those afraid of managing ten- ants, this is the obvious choice. You're likely already dealing with space for your building; you might as well own it. Bonus points if you can buy your current space off your landlord. 4) Buy investment property locally. You're aware of what space would lease well to businesses in your industry. If you're an attorney, buy a professional office building. If you're a doctor, buy a medical office. If you're a manufacturer, buy a warehouse. Maybe you prefer the security of residential property and decide to start out by buying a triple-decker. 3) Invest in real estate limited partner- ships. Limited partnership investing allows you to contribute capital, typically $50,000 -$250,000, into a real estate investment managed by a professional real estate opera- tor. You get the benefits of real estate owner- ship, avoid the headaches, and leverage the skills of skilled investors. 2) Buy a vacation home and rent it on Airbnb or similar services. This method of investing can combine leisure and profits. With a good manager, this type of investing can be enjoyed with minimal headaches. 1) Buy real estate with a partner. Want to own your space but don't want to be a solo landlord? Partner with someone that wants to be a landlord and property manager. Love that $5-million building but don't have enough money? Combine resources with friends, colleagues, or professional investors. Partnerships can be a terrific way to own the space you occupy without personally taking on landlord responsibilities. Optimizing estate plans under Trump's megabill BY SLOANE M. PERRON Special to WBJ P lanning ahead can prevent future chaos, especially when it comes to succession planning. Whether due to retirement, promotions, layoffs, or unexpected life events, there will likely come a time when your company must move forward without you. Creating a clear plan clarifies colleagues' roles so they can carry on the company's legacy. Map out essential roles. Instead of focusing on every position in your com- pany, concentrate on the roles within your leadership team. A company is only as strong as its leaders, and assessing their responsibilities while identifying potential successors can transform a chaotic scramble to fill vacancies into a Securing the future with succession planning Matthew Erskine is managing partner for Worcester law firm Erskine & Erskine. BY MATTHEW ERSKINE Special to WBJ I n the changeable landscape of estate planning, family business owners face unique challenges. e changes introduced by the One Big Beautiful Bill Act necessi- tate a thorough review and adjustment of estate plans. ere is a guide for fam- ily businesses owners to ensure compli- ance and optimize tax outcomes. Marital deduction maximization. Family business owners should prioritize maximizing the marital deduction under federal and Massachusetts estate tax laws. is involves ensuring testamen- tary trusts are structured properly to qualify for the marital deduction, avoid- ing provisions inadvertently reducing effectiveness. e new Unified Credit for federal estate taxes is now set at $15 million, whereas the Massachusetts credit remains $2 million, so the optimal amount to fund the marital deduction will be as much as $13 million more than the optimal amount to fund the federal marital deduction. Generation-Skipping Transfer (GST) tax strategy. e GST tax can signifi- cantly impact family business succes- sion. Business owners should examine the allocation of GST tax exemptions to minimize transfer taxes for future gen- erations. Creating subtrusts or utilizing powers of appointment can be effective. Trust reformation for intent alignment. If a trust instrument does not reflect a business owner's intent due to draing errors or tax law changes, reformation might be necessary. Aligning the trust with the owner's goals can optimize tax outcomes and ensure compliance with marital deduction requirements. Tax apportionment clauses. Review- ing tax apportionment provisions in wills or trusts is crucial. Family business owners must ensure these clauses don't unintentionally increase the tax burden, particularly on marital trusts, to pre- serve the primary intent of minimizing taxes. Leveraging alternative valuation dates and disclaimers. ese elements offer flexibility in reducing estate or income taxes, which is vital for family owners aiming to preserve wealth. Charitable contributions and deduc- tions. Ensuring property earmarked for charitable purposes qualifies for deduc- tions is essential. Proper structuring can enhance the deductibility. Beneficiary designations review. Aligning beneficiary designations with the overall estate plan is crucial. Busi- ness owners should ensure designations for life insurance policies and retirement accounts reflect the updated tax laws to safeguard their family's financial future. Prior taxable transfers consideration. Business owners should review prior taxable gis or transfers to ensure they are accounted for in the estate plan. Uti- lizing applicable credits or deductions can impact the overall tax strategy. Flexibility for future tax law changes. Including provisions allowing for ad- justments in response to future tax law changes is crucial. Granting trustees or executors discretionary powers to adapt to new legal requirements ensures the estate plan remains relevant. By following this checklist, family business owners in Massachusetts can systematically review and update their estate plans. is ensures compliance with the OBBB Act and Massachu- setts-specific tax laws. 5 THINGS I know about ... ... How business owners can invest in real estate thoughtful, strategic transition. "Even if you do want to eventually have an idea of how you'd cover any position on your team, focusing on leaders is the best place to get the process started, especial- ly since vacancies in those positions can cause the biggest disruptions on your team," Kat Boogaard writes in an article for soware company Atlassian. Equip successors with resources. Aer identifying the future leadership cohort, it is essential to provide them with the tools they will need to ensure future success. Specialized training, workshops, coaching programs, and further education expand the team's capabilities and maximize the effective- ness of the succession plan. "By focusing on the competencies and leadership qualities required for key positions, you can bridge the gap between an individu- al's current capabilities and those needed for their next role," Monique Verduyn writes for Academy to Innovate HR. Prepare for continuous change. Succession in companies is not a one- time event but an ongoing process, as vacancies arise for many reasons. Preparing early and revisiting plans regularly ensures you are actively shap- ing your company's future rather than reacting to unexpected changes. Elisa Shevlin Rizzo of J.P. Morgan Private Bank recommends viewing succession planning across three timeframes: short- term (0 to 3 years), medium-term (3 to 5 years), and long-term (5 to 10 years and beyond). is structured approach helps leaders align immediate needs with long-range vision. W W W

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