Estate Planning, Probate & Guardianship
Areas of focus within estate planning, probate and guardianship.
Business Succession Planning
Margrave Celmins, P.C. can assist in situations where a personal asset is the family business operated by the parents and possibly one or more of the children.
Significant problems often arise as to continuing a business after a parent has retired or dies. The issues often revolve around the question of what role in the operations and/or ownership the remaining family members should have, if any, or whether the business should be sold.
This failure to plan prior to death or incapacity can lead to some unfortunate consequences down the road that offer the potential for mismanaging the business, creating negative tax issues, in-fighting among beneficiaries, lack of a qualified person to step in upon the occurrence of a catastrophic event and ultimately even failure of the business to the financial detriment of all.
Here are just a few issues that can arise in the family context:
- What type of process for transition of ownership and control is contemplated? Will parents really be able to give up control?
- Are some children active in the business and some not? How are the short-term and long-term interests of active and inactive children to be reconciled?
- With children active in the business, how will differing abilities and work habits between or among them be taken into account?
- Do parents favor some children over others—to the detriment of a successful succession plan? What if there is a daughter with greater business acumen than an older son?
- Are there sibling rivalries that need to be addressed?
- Is the present business structure the right one for the succession plan or does it need to be adjusted or revised now in contemplation of future events?
- Should the business be sold to a third party buyer or to key employees?