Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Saturday, October 26, 2013

Estate Planning for Executives Engaged in Crowdfunding


Technology company executives can now engage in crowdfunding, whereby they publicly solicit potential investors.  The CEO must establish the terms and conditions of the investment at the beginning of the offering process.  Getting the offering terms right from the start will have serious implications for the estate settlement plans of these executives.

Technology executives engaged in crowdfunding should develop an estate strategy beforehand involving a will, a trust, a family limited partnership (FLP), and a funded buy-sell agreement which ties all these documents together.  Once the CEO has put into place the best estate plan possible using these tools, then they can get the terms and conditions of their crowdfunding project established.

Because this is a new area of law and finance, executives are cautioned to seek legal counsel when adjusting their estate settlement plans.

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


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