When you own a closely held business, continuity and succession planning is critical for protecting the value you have built in your company. In fact, this consideration is an important component of comprehensive asset protection and estate planning.
Have you considered what would happen if you died suddenly or became incapacitated and unable to continue the day-to-day tasks of running your business?
Although this is a topic that few business owners want to consider, planning for the worst-case scenario is critical, if you hope to preserve as much of your accumulated assets as possible. And that includes the business you have worked so hard to build.
Considerations of Family Business Succession Planning
Few closely held businesses have the right infrastructure in place so the principle decision-maker can seamlessly step in if needed. Even if you have family members involved with day-to-day operations, they might not be read-in on all the tasks you handle or decisions you make.
Continuity and succession planning help ensure that, no matter what happens tomorrow, your company will continue to grow and thrive.
In most cases, the closely held business comprises the principal asset of the family. Implementing a comprehensive plan will not only ensure that your company keeps running effectively, but it also protects your heirs from the potentially steep probate fees and estate taxes they might face — especially if your business has appreciated in value.
Change Your Mindset for Effective Succession & Continuity Planning
Too many business owners never differentiate between working to make their company a success and leading it through the growth process.
If you want your legacy to live on after you, you must shift your thinking and become a leader rather than a doer. And that can be one of the hardest tasks you will ever face. It requires acknowledging your mortality, but it also requires a willingness to hand over control of what you no doubt view as your territory.
Ultimately, however, confronting these realities will improve your life as well as protect your interests. When you can step away — even for a few days or a week — and know that your company is in good hands, you will discover freedom and peace of mind.
Let an Experienced Estate Planning Expert Assist You
If you have no idea how to go about establishing a continuity and succession plan for your business, know that you are not alone.
Working with an asset protection and estate planning attorney is a highly effective approach for ensuring that you consider every possibility and plan for every scenario. This is a complex situation that requires in-depth knowledge of business and tax law issues, and you cannot afford to leave any detail unresolved.
Foregoing professional advice means you could put the future economic well-being of your loved ones at risk.
Cantley Dietrich specializes in complex estate planning, asset protection, wills and trusts. Contact us today to learn more about how effective succession planning strategies can help you protect the assets and the future of your family business.