Business Planning Is Legacy Protection
When business owners build estate plans, they have an additional, sometimes complex, layer of concerns beyond those of average people. In addition to the usual designation for distribution of personal assets through a will and/or trusts, business succession planning can protect legacies, fortunes and human networks. A business succession plan that is incorporated into an overall estate plan can help increase the likelihood of a business’s ongoing viability into the next generation.
Many Florida business owners and families turn to our team at Horacio Sosa, P.A., for legal guidance in business succession planning aligned with personal and family estate planning.
Elements And Benefits Of A Business Succession Plan
A succession plan for a family business or any business typically spells out intentions about future decision-making powers and leadership positions within the business. Without a legal road map, there is great potential for future conflicts, risking alienation among business partners and family members as well as a likely decline of the business’s stability.
Ideally, business succession planning will be part of the early formation and growth of a business and will be in sync with the owners’ estate planning. It is never too late to start or upgrade a succession plan that may involve:
- Naming a successor of the founder, ideally 15 years or more prior to the founder’s planned retirement
- Designing training and mentoring programs for one or more successors, deliberately developing their skills to meet future needs
- Creating a step-by-step process for assumption of leadership, by which the successor(s) assume leadership responsibilities incrementally over time
- Envisioning current owners’ and executives’ retirement along with the phased-in training of the next generation of leaders
Comprehensive business succession planning and estate planning go together like a hand in a glove. Business partners often count on each other to integrate their personal and family estate plans with business succession plans. Doing so deliberately and thoughtfully can protect a business from great losses or ruptures due to unexpected divorces or deaths of partners.
Map Out Your Business’s Future Beginning Now
Your business’s current operational demands may seem all-consuming, leaving little time and energy to pursue long-range planning. Let us guide you through the creation of a succession plan while you carry on doing what you do best: running your business well.
We are eager to learn about your business and your estate planning goals. From our law offices in Davie, we can help you design your long-range legacy road map in person or through web conferences. Schedule a consultation by calling 954-361-8966 or sending an inquiry by email.