Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, April 6, 2015

Succession Planning Considerations

HandsWhether a family business is big or small, succession planning is important to avoid family feuding or damage to the business. Here are some tips for avoiding mistakes in succession planning:

  • With only half of family businesses having a succession plan and only a third surviving the death of the business, start succession planning sooner rather than later.
  • Careful consideration of future management and leadership can be aided by bringing in outside advisors and considering not only family members but current employees outside of the family.
  • Have an appraisal done to get an accurate and emotion free assessment of the business' value.
  • Make succession planning an open dialogue with all involved, including potential successors and family members.
  • Don't forget to include tax consequences in succession planning to avoid business assets having to be sold to cover taxes after the founder dies.

See John D. Colucci, 5 Mistakes To Avoid When Creating A Business Succession Plan, Mondaq, Apr. 1, 2015.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2015/04/succession-planning-considerations.html

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