Planning to pass your business to the next generation can be complicated. Other assets are far simpler, but you’re not just giving someone a business as a line in your estate plan. You need a complex business succession plan that really works for the company and for your family.
This can be hard to design and there are a lot of factors in play. To help, here are four key tips to keep in mind.
Talk to your heirs about your plans. Ask them what they want and what they expect. This is your plan, but it must line up with their goals and aspirations. You don’t want to assume that they’re ready and willing to step into place when the time comes.
Get started as soon as you can
Succession planning means both coming up with the plan and then working with your heir to train them and provide on-the-job experience. The sooner this begins, the better.
Try to minimize rivalries
Succession planning can lead to disputes and rivalries between your heirs. What you think is best for the company may not be what your heirs want. Remember that this can be difficult and be prepared to take on those challenges.
Remember that flexibility has benefits
You’re planning now, but you’re not passing the business on yet. Don’t be afraid to make changes to the plan as you and your heirs begin the transition and training process.
How to get started
These tips can help guide you, but it’s equally important to understand all of the legal steps that you will need to take as you get this process started. Working with experienced professionals may help tremendously.