How Does A Lawyer Assist in Succession Planning For Family Businesses
How Does A Lawyer Assist in Succession Planning For Family Businesses
In areas where leadership is required, a good succession plan must be put in place to ensure a smooth transition of leadership. However, in families, a simple succession plan can become sensitive and complicated as most family members are only looking out for themselves. This problem occurs even in close-knit families because this time, it is not a question of who will take over the family business, but who is interested in the family business.
These things happen, and the best way to take care of the situation with less hassle is to work with an estate planning lawyer. This article will discuss everything you need to know about business succession planning and why you should work with an estate planning lawyer. Continue reading to learn more:
Succession planning in family businesses
Succession planning for businesses involves preparing a replacement for when the current owners or key employees leave a position in a business or exit the company.
In non-family businesses, succession planning may not pose any challenge since leaders of top management of the company can leave the company without worrying about their replacement. However, in a family-owned business, careful planning is required before ownership of the business can be transferred to another person in the family.
Some families often do not pay much attention to creating a good succession plan, most times, they put it off until the last minute. They do this out of fear of conflict or because they’re unsure who should get the position since there are many qualified candidates in the family.
Some delay the process because they think no other person is capable of filling up the leadership position when the current one leaves. Whichever the case may be, the problem remains that lack of proper succession planning will create more problems in the future.
Why work with a good estate planning lawyer?
-
They help create a solid business structure
A good estate planning lawyer ensures that your family business is legally grounded. Depending on your choice, they choose the best legal entity for your business such as a partnership, Joint Stock Company (JSC), or limited liability company (LLC).
-
They help create an effective succession plan
A good succession plan ensures that the family business continues to exist long after the founder has retired or died, as the case may be. An estate planning lawyer will work closely with you to create a comprehensive succession plan that details the next successor, their roles and when to take over the leadership position.
-
They help settle family disputes
It is natural for disagreement to occur during succession planning. Sometimes this leads to the fallout of some family members which is not meant to be. An estate planning lawyer can help in resolving these disputes and come up with the right solution that is beneficial to everyone.
Conclusion
Are you ready to secure the legacy of your family business? Then working with a reliable estate planning lawyer is your best option. With their expertise in family business regulation, they ensure that your family business remains standing and continues to grow for generations to come.