You will spend a great deal of your lifetime building
your business.
Come the time when you are ready to transfer
the business to a younger generation, how will
you plan for it? Have you done so already?
Discover some of the unique issues in planning
for and implementing the transfer of the
family-owned
business.
Estate Planning And The Business Person
How long is it since you
have clearly analyzed,
what you would like to happen to your personal
and
business estate upon your death?
Have the following matters really been
addressed?
For example:
What is the business really worth today?
What amount of debt is outstanding?
What is the net worth of your estate?
How would your spouse be provided for?
Would a family member take over the
business?
Would this person have to buy out your
share?
Or perhaps all shareholdings?
Are there any other family members you would
like
to provide for?
Would you want to sell the business and
would you want your estate to provide an equitable inheritance to each
family member?
If not where would the cash come from?
What are the Capital Gains Tax consequences
of your Will?
You can ensure
that the right amount of cash
is available to carry out your wishes
through
estate planning.
Key Difficulties
Lack of viability of the business
Lack of planning
Little desire on the owner's part to transfer the firm.
Reluctance of offspring to join the firm
Heirs or beneficiaries...how to tell?
But wait a minute... We've talked about what happens
if you die. What happens if you don't? What do you want to happen with
the business into the future? You plan to stay working until you drop,
or do you have other things you want to do with your life in the years
to come. Do you want the business to continue when you retire? Who
will run it then? Will you sell it or pass it on to your children? Do
they even want it? How will you get paid for it?
Business succession planning should be an ongoing
process, not an event. It is planning to be in charge of the future
you want for your business, and for yourself.
Picture the future you want...
see it - feel what it's going to be like - and then you can
build toward making it the reality.
Are You Excited About Your
Future?
