Estate planning and business succession often go hand in hand
It's understandable that California business owners and others who worked long and hard to get their companies off the ground are concerned about the future -- namely, how to protect the legacies they've worked so hard to build. Many prudent business owners also think ahead, knowing there will come a time when they are deceased or no longer able to head their companies due to mental or physical decline. Executing a solid business succession plan ahead of time and working it into an estate plan may be the best means for protecting assets and ensuring the continuation of a business.
There are many resources available to guide business owners through the succession process. One of the best sources of help is experienced legal representation. An experienced estate planning and administration attorney can provide guidance and support while helping to overcome any legal obstacles that arise. Therefore, one of the first logical steps to take to begin a successful succession process is to arrange a legal consultation.
It also helps to think things through before taking action, such as deciding who will receive the torch being passed as a business changes hands. Will it go to a particular family member or several? Will the entire business be sold to an outside party or group? Sometimes, business owners find their successors within their companies. Is there a current employee or family member with strong business and leadership skills who might fit the bill?
Once a new business owner is chosen, however, it's always best to discuss the matter with that person or people before putting anything in writing. Many times, the new business owner must be groomed in order to acquire all the necessary skills and qualifications to step into the role. There is no definite script for writing a business succession plan; however, an experienced California attorney can be of assistance from start to finish.
Source: allbusiness.com, "Tips on Successful Succession Planning", Accessed on Feb. 1, 2018