As a business owner, one of the major assets that you own is your company. You’re making your estate plan and considering what to do with things like investment portfolios, real estate and the physical assets that you own. But you know that you also have to have a plan for your family business.
The first thing to think about, of course, is simply passing that business on to your heirs. You can certainly leave it to them if you’d like to do so. It’s usually best to talk with them in advance so that you can make decisions and gauge their interest. You can also work with them to set up a business succession plan and train them in how to run the company. In an ideal world, this entire process is going to take years, so it’s best to get working on it as soon as you can.
What if they don’t want the business?
One issue that business owners sometimes face is that their children want their inheritance, but they don’t want the business itself. They’re not interested in running it because they have their own interests or their own careers.
If you find yourself in a situation like this, then it may be time to sell the business to a third party. You could bring in another business owner that is in your network. You could advertise the business and gauge interest in the local area. You could even talk to your employees and see if any of them would be interested in buying the company from you when you retire. No matter what you do, then you can leave the money that you earn in the sale to your children.
If your estate plan has become complex due to issues like these, it’s very important to know what steps to take.