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Gifting continued Succession Stories continued entitled to at the time of death. When you think about it, started rebuilding." this means that the interest in the house is included, the value Life was business as usual until Selevredes' dad passed in of their watch, the value of their clothes and even the value 1963, and his mother acquired Federal. Those were tense of their cars are included in the determination of their gross times, he says. "Mom had worked alongside my dad, so she estate. Add this all up and it could be quite a large amount. knew the business. But at the time, there was only a handful If the value of the property gifted becomes too large, it may of women in business back then, and it was tough for her," exceed the exemption amount for estates, which, Selevredes says. "When my dad died, everyone means the estate will have a tax liability. This may cut her off and put her on C.O.D—except for one If the value force the estate to sell assets one wanted transferred company, the Original Bloomfield Brothers. They to a certain person. However, using the gift rules of the knew my mom and dad from our days in Chicago, to your advantage, will ensure the property can be property and knew she could run the business. She was a transferred tax-free to the right person. very strong person, opinionated and bitter about gifted how she was treated." becomes too About the Authors "Contentious" is how he describes the day-to-day Dr. Bart A. Basi is an expert on closely held large, it may back then, largely dictated by the unwritten rules enterprises. He is an attorney, a Certified Public of the time and the number of family members exceed the Accountant, and the Senior Advisor for The Center working at Federal. "I'm sure some of the people for Financial, Legal & Tax Planning, Inc. He is exemption in my age bracket can relate," says Selevredes. also a member of the American Bar Association's amount for "I'm sure their kids don't remember some of the Tax Committees on Closely-Held Businesses and arguments they had back then, but I'm sure their estates. Business Planning. dads relive them every day. I relive them every day." Marcus Renwick is an attorney and the director The biggest takeaway from the past is that of research and publications with the firm. Selevredes and his wife, the majority owner of the company, have funneled their efforts into redirecting it, starting with allowing their kids, Demetre Jr. and daughter Nicole, to have a voice in how the company is run. He's the vice president of operations; she's vice president of finance. Both are big on life in a family business. "My sister and I love being part of a family business and we Great deSiGn iSn't love our parents," says Demetre Jr. "There's no jockeying for positions, we work well together and have a great time with juSt functional, each other. You can never say enough about that." it'S effort less if you're looking for a durable & ergonomic carafe or airpot, look no further than celebrating 100 Years. Find us online: Service ideaS, inc. 2354 Ventura DriVe • WooDbury, Mn 55125 800-328-4493 • 651-730-8880 Fax • WWW.serViceiDeas.coM 38 FEDA News & Views Parting Advice: Don't hold your kids hostage. "The perception is that everybody that owns business are going to have children who are interested in the business and, more importantly, capable of running the business," says Demetre Selevredes of Federal Supply. "There are people who have kids that aren't capable of running a business and they don't want to acknowledge it because of their own egos. They figure that the more they keep them in the business, the more they will get involved and love it. Instead, all they're doing is alienating them even more. "I never fell in love with this business until I got to the point where I didn't care and decided to get the oak tree off my shoulder and make the best of it. Am I doing better than most? Yes. Than some? No, but I don't know if I want those headaches. People in control need to understand that they won't be in control forever."