You worked hard to build your company from the ground up. You’ve been at it for 40 years. Now you’re hoping to pass it on to your kids, but you know just how complicated that can get.
Tax issues and disagreements among family members are two of the main reasons that these plans fail and businesses fall apart. Keep that in mind when creating your plan and take steps to prevent both.
To help, here are a few key tips you may want to use:
- Don’t do it all alone. Get professional insight from outside your company and your family.
- Train your heirs. Work alongside them. Bring them on early and get them involved. Don’t just assume they know everything you know. The transition is a lot smoother if you’re just handing the company to someone who has worked with you for a decade.
- Remember that everyone doesn’t have to be equal. Pick the jobs and roles that work best for your kids based on their skills, not because you think every child needs an equal position. Children are not all the same. Don’t pretend they are.
- Consider all of your options. One family member may be far better at running a company than another. In some cases, selling the company and dividing the assets may be the best plan.
- Communicate with your heirs through the entire process. Make sure they’re involved and find out what they want.
- Get started as soon as possible. The more time you have, the stronger your plan will be.
Would you like to learn more about business succession planning and how to keep your company going strong for years to come? If so, our website can answer many of your most pressing questions.