Identifying the right person to take over the family business

On Behalf of | Jul 26, 2018 | Wills |

Georgia residents may have planned to pass down their assets and legacy directly to their children. However, this may not always be a wsie idea. This is because a person’s offspring may not be qualified to run a business or handle money on their own. They also may not be interested in running a family business. Therefore, it can be beneficial to create a succession plan that allows future generations to benefit from an asset without controlling it.

A succession plan could allow a key employee or other experienced individual to take control of the company when the current owner is ready to retire. Taking this step enables the business to thrive and keep the legacy of its founder alive for years or decades to come. Furthermore, by transferring control of the company to someone who is qualified to run it, it can help to smooth over any problematic family dynamics.

While it may be tempting to transfer property directly to heirs, an individual should consider whether this is the right decision. Ideally, a family business owner will talk with his or her children about inheritance issues and other relevant estate planning topics. If necessary, the company may be placed in a trust or otherwise structured so that future generations can still benefit from the revenue that the organization creates.

It may make sense to sell the company in the event that there is no key employee or other individual who can take over the business. An accountant or other consultants may be able to help a business owner determine if this is the case. An attorney can often assist in drafting a succession plan or other documents related to how company assets are handled.

FindLaw Network