50+ Lifestyles

Protecting Your Family Business

By Ryan Denman
Duffy Law Office

The most important factor in ensuring that your family business is protected for future generations is a well thought out succession plan. Creating a succession plan that works may take years of planning and talking with other family members so that everyone knows what their role in the business will be.

The succession plan for a family business should name who the legal owners will be, as well as provide information to all family members involved in the business. In addition to this, you will want a plan that includes keeping your employees updated throughout the transition phase. Your plan will also need to include all of the legal steps necessary to ensure a smooth transition when the time comes. This is where your estate plan will be important; anyone that owns a family business will need to make sure that they have an estate plan that will cover all of the bases for handing over that business to the next generation.

Due to the fact that the transition of a family business can be quite complex, you will want to start preparing for this several years prior to the actual transition. When people are required to change their roles overnight, this can lead to some major problems. To lessen the impact on everyone involved, you will want to make the transition slowly.

According to recent surveys, almost half of the families owned business in the United States do not have any type of succession plan. Not having a plan in place can be devastating to your family’s business, as a large number of businesses do not survive into the next generation.

One of the biggest dilemmas facing business owners is when to start the transition. While some feel it is best to hand over the business after they are deceased, others start the process well before this. In most cases the slower the transition process, the more successful it will be. For this reason it is almost always better to start your business succession plan while you are still around to help through the process.

To ensure that your family business continues to grow strong and provide for future generations you will want to contact an estate planning attorney. Planning now can help save your business, as well as you, and protect your family in the years to come.

Ryan Denman is an attorney at Duffy Law Office. He can be reached at (563) 445-7400 or at info@duffylawoffice.com. Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.