The Parents Refuse to Get Involved

In Slate's Pay Dirt money advice column, a reader asks whether their brother is trying to steal their parents' luxury sales business as the parents retire. The brother, who has worked there for 20 years, wants full ownership for free, claiming the business is worthless despite a $1,000,000 valuation from a hired firm. The reader, who runs their own successful business, worries the brother might sell it later for profit, and their three teenage kids want to keep a share for future involvement.

The parents refuse to get involved. The advice recommends consulting a lawyer to handle the transfer, tax implications, and potential conflicts, and suggests getting a second independent valuation if the brother disputes the first. The column also addresses a second question about a reader who accidentally withdrew $700 monthly from each child's 529 account and deposited $650 back, worrying about tax consequences; the advice clarifies that withdrawals used for qualified education expenses are tax-free. I hear you, and you’ve had a firsthand look at how the business is handled for the past 20 years, but having some professional guidance will make sure we’re doing everything right.