BusinessWeek has a tip up now covering an important topic that anyone running a small business should be thinking about: how best to pass over ownership of your business to your loved ones.

In a nutshell:

Planning a tax-efficient transfer of the business to the participating children involves giving them small pieces while you and your wife are living, to reduce the amount of estate taxes when you pass away. This strategy is suited for a business that is incorporated since you can transfer shares easily. Gifts to children during your lifetime are subject to gift taxes, but under current law, a couple can pass up to $26,000 per year to each child free of gift tax.

It’s a short article, but an important one. You can read it here.