A Complementary Resource for Your Clients and Your Practice

For business owners, a company often represents a substantial share of personal wealth and a lifetime of work. An Employee Stock Ownership Plan (ESOP) may offer a way to diversify that wealth, plan for succession, and preserve a company’s culture and legacy—while potentially retaining management continuity.

The financial and tax-planning implications can be significant. Qualifying owners selling shares to an ESOP may be eligible for capital gains tax deferral under Section 1042 of the Internal Revenue Code, subject to specific requirements. The strategy warrants careful evaluation with the client’s tax and legal advisors.

Old Harbor Advisors is a complementary resource for wealth advisors serving business owners. We provide education and information on ESOPs, help assess potential fit, and work alongside the client’s existing advisory team to explore ownership-transition alternatives. Our goal is to help you bring another valuable option to the table—one that may strengthen your client relationships and help owners make more informed decisions about their wealth, their businesses, and their legacies.