Succession Planning for the Family Business

The future success of your family business requires careful planning. Statistics show that only 30% of all family businesses are carried on by the second generation and only 10% survive to the third generation. A well laid out estate plan will ensure that your wishes are observed. It spells out the steps for a smooth transition in management and continued operation of the business. It will also help reduce the tax burden that could threaten the business.

Some of the issues you must deal with include succession planning and implementation, strategies to minimize taxes, ownership transition and selling the business outside the family. Family businesses are unique because they must deal with the dynamics of family relationships, which sometimes involve conflict between generations and/or rivalry between siblings. Your estate plan can indicate how disputes are to be resolved, which may make provision for mediation.

You should advise your appointed Estate Trustee and all of your family members who are or will be involved in the business of your plans. This will minimize the risk of a court challenge. One of our experienced lawyers can help you develop and properly execute an estate plan that will help to prevent discord within your family and protect your business for future generations.