You’ve taken the sensible step to address your estate plan. You may be doing this for the first time or simply updating after some life changes. Your estate plan can include a will, trust and several other legal tools aimed at carrying out your final wishes.
One thing that you want to address is your business succession plan. You are considering passing the family business on to your children once you pass away — but are your children ready to take over the business?
Is it really what they want?
Your estate plan should reflect your wishes, but for such a significant move like passing your business on, you should make sure that this is something they want to do. If they have always been involved in some capacity or generally taken an interest, then this is a good start. If your child has never played any part in the business, then they may not be the best fit to take it over.
Is it going to cause friction?
One thing that you want to try and avoid in your estate plan is creating conflicts. You’re never going to manage to please everyone, and it is your wishes that matter, but finances can bring out the worst in people. Is handing your business over to one child going to create friction between the rest of your kids? Sometimes, sitting your loved ones down and sensitively explaining your wishes can help to prevent disputes.
Addressing your business succession plan is essential. As you do this, it may benefit you to have some legal guidance on your side.