Even if families get through the
hard talks about interpersonal rela-
tionships, they still need to ask the dif-
ficult business questions: If one child
is managing the entire business, does
that child get extra compensation? If
properties are split up, what happens
if one child goes bankrupt? How can
value be distributed evenly if proper-
ties have different values?
“If I’m going to split it up and Prop-
erty A has debt, but B and C don’t,
how do you deal with that?” says Kent
Silvester, an attorney at Boutin Jones
in Sacramento.
Silvester, who specializes in tax,
business and estate planning, helps
clients navigate this shaky ground to
help them avoid friction and save on
taxes. One of his clients decided to
keep their real estate business togeth-
er, but Silvester helped set up a struc-
ture that would minimize adverse tax
consequences on any future separa-
tion of the properties, allowing for an
easier break up should things go south.
“You would typically have less fam-
ily friction if each is on their own,” Sil-
vester says. “They’re responsible for
their own property, don’t have to inter-
act with siblings. But the children may
say, ‘Johnny got the great property, and
Sally got the dog’ — at the time you did
the planning, it looked great, but now
Sally has no cash flow.”
DIVIDED INTERESTS
When it comes to commercial real es-
tate, many families are not developers
like Friedman. Instead, they are merely
investors who let someone else man-
age their properties, according to Jan
Rosati, a CPA and partner for MGO,
an accounting, tax and advisory firm
in Sacramento.
Families with real estate invest-
ments often use a holding compa-
ny structure, with all the properties
owned by a single entity (a partnership
or LLC). Family members then own
shares in the holding company. This
structure is easier to administer and
control, Rosati says, but it could also
alienate later generations without any
stake or interest in a passive operation.
“The first generation sees it as their
legacy,” Rosati says. “But by the third
and fourth generations, the number of
FAMILY
BUSINESS
SINCE
1906
Fischer Tile & Marble
CELEBRATING MORE THAN 100 YEARS OF SUPERIOR SERVICE
T
[PICTURED L-R]: TRENT FISCHER, PROJECT MANAGER | JAY FISCHER, PRESIDENT | TARYN FISCHER, PROJECT MANAGER
here’s longevity, and then there’s Fischer
Tile & Marble. Since 1906, Fischer Tile has
delivered the highest quality of service in the
installation and fabrication of tile, stone and solid
surface throughout Northern California and Hawaii.
A family business passed down from generation to
generation, Fischer Tile was built on the premise
of hard work, consistency and passion. The
company employs 130 people, and credits its long-
term success to the breadth of its offerings in the
commercial and residential divisions, and to its
“Our
established
years in
business
is your
guarantee.”
— Harry Fischer
second generation & former president
talented team.
While the construction industry has seen a
multitude of changes during the past century, Jay
Fischer, President of Fischer Tile, sees an important
sense of continuity in his family’s firm. “Our
continuing hallmarks are quality, reliability and
experience — all due to our dedicated, experienced
craftsmen and employees. That won’t change, even
after another century.”
Fischer is also extremely thrilled to welcome his
daughter, Taryn, who recently joined the team after
10 years working for Daltile. She joins her brother
who has been running operations for the stone
division since 2012.
1800 23rd St.
Sacramento, CA 95816
916.452.1426
www.FischerTile.com
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