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May 8, 2006 4:25 PM

Carriers who wish to successfully pass their company on to their heirs not only should have a well thought-out plan in place, they should review and update plans periodically, said Terry Resnick of Resnick and Associates at the National Tank Truck Carriers annual conference May 7-9 in San Antonio TX.

"These issues may be more important than running a company on a daily basis," Resnick said.

Inefficient succession/estate planning has led to two out of every three family businesses failing to be passed down to the second generation, he said.

To avoid tax and other inheritance pitfalls, he recommended owners begin to pass authority and responsibility to those adult heirs who expect to eventually own the business.

Another important part of an inheritance plan involves accurately determining the value of the company and understanding its liquidity should family members face estate taxes and other expenses in which alternative resources are unavailable.

Common goals of an estate plan also should include distribution certainty, reduction or elimination of estate taxes, guarantees that all children are treated fairly, and assurance that disabled family members will receive proper care.