When it comes to succession in the family business, there are usually some scuffles between family members because everyone believes they have the right to succession. However, to ensure a smooth transition of leadership, the role of a trust attorney cannot be ignored. Trust attorneys provide guidance and help with the legal process involved.
If you’re planning to hand down your family business to a successor, and you have several stakeholders in the business, you should involve a trust attorney to avoid conflict and strive.
This article will explain everything you need to know about the roles of trust attorneys in family business succession. Continue reading to learn more:
Key Roles of Trust Attorneys
- They help with estate planning and trust formations
Trust attorneys help in creating estate plans that include trust formations. Although, as the owner, you have a say in how you want your assets to be managed and distributed to ensure your business remains intact during the succession process. Trust attorneys can also help with tax payments and protect your business from hungry creditors.
- They help in creating succession documents
Trust attorneys help in drafting the necessary documents required for the succession process such as wills, living trusts and business succession plans. These documents state how the success process will be, who will take over the business and how the assets will be managed and distributed. This process helps other family members understand their role and play their part in the succession process.
- They help in resolving conflict
There are usually many stakeholders in the family business and each of them has their perspectives and agendas. Trust attorneys act as mediators and help in resolving conflicts that may hinder the succession process. Their guidance and advice help keep the family in harmony and focus on the long-term success of the business.
- They help with tax planning and optimization
Succession planning involves tax payment and consideration. Trust attorneys work together with tax advisors to create possible ways to reduce tax liabilities during the succession process. This might include setting up trusts that use tax exemptions, or structuring the transfer process so that it doesn’t involve paying lots of taxes.
- They help establish a business continuity plan
Trust attorneys ensure that your business continues to progress after you're gone. So they create a business plan which involves a contingency plan to address unexpected events like sudden death or sickness. These plans may include choosing a temporary manager who is capable of maintaining the business operation until a permanent successor has been appointed.
Conclusion
Trust attorneys play an important role in family business succession. They put their legal skill and experience into practice and ensure a seamless transition of power in the family business. They address legal and family problems during this process and ensure peace and unity reign. Their involvement is necessary in preserving the legacy and continuing the success of the family business across generations.