Estate Planning for Executives Engaged in Crowdfunding

Technologycompany executives can now engage in crowdfunding, whereby they publiclysolicit potential investors.  The CEOmust establish the terms and conditions of the investment at the beginning ofthe offering process.  Getting theoffering terms right from the start will have serious implications for theestate settlement plans of these executives.

Technologyexecutives engaged in crowdfunding should develop an estate strategy beforehandinvolving a will, a trust, a family limited partnership (FLP), and a fundedbuy-sell agreement which ties all these documents together.  Once the CEO has put into place the bestestate plan possible using these tools, then they can get the terms andconditions of their crowdfunding project established.

Becausethis is a new area of law and finance, executives are cautioned to seek legalcounsel when adjusting their estate settlement plans.

See Thomas Vass, Estate Planning for Technology ExecutivesEngaged in Crowdfunding, Crowdsourcing.org, Oct. 16, 2013.