There are many retirees and current business owners in Florida. Estate planning is a discussion topic in many households. For those who own their own companies, it is worth adding business succession to the estate planning process.
Sitting down as a family to talk about estate planning is a good idea. It is also wise to create a plan to protect a business, including who will take over ownership, as well as who will oversee operations and many other relevant issues, such as who will manage the company’s finances. Sometimes, all these duties are fulfilled by one person. Other times, a business owner might have several people in mind for various things.
Business succession demands careful decisions
It may be tempting for a Florida business owner to specify a particular adult child as the new owner or executive manager of a business simply because of family ties. Making decisions based on relationships rather than qualifications can be disastrous to a business. Another family member or even a non-relative may be better suited for a specific role. It is also possible that someone a business owner has in mind to take over the company is not willing to do so.
Discussing the details of a business succession plan with those who will be involved and seeking experienced legal guidance throughout the estate planning process is the best way to protect assets and ensure that a company will continue to thrive after the initial owner passes from this life. An estate law attorney can also help resolve any legal complications that arise during the planning phase, as well as during probate. Such support is especially helpful if someone challenges the validity of an estate document.
