Why do I Need a Succession Plan for My Business?

Do not let your business die when you do.

Do you own a family business?

If so, you are in good company.

Between 80 and 90 percent of business in America are family owned.

Unfortunately, most do not last beyond the founding generation.

According to a recent KRCU article titled “Business Succession Planning is Very Important,” more than two-thirds do not survive after the first generation passes away.

Only 10 percent will still be running into the third generation.

If your family is planning to continue your work after you have died, then you will need to begin planning for the succession of your business now.

Without a plan the default plan for your business will be its tragic failure should you get sick, die, or merely want to retire.

There are a number of questions you will need to address when creating a plan.

What will happen to your customers?

Who will manage the business?

How will the business impact your estate taxes?

How will ownership be divided?

There is no cookie-cutter plan to fit every business.

You will need to work with an experienced estate planning attorney to create a plan to meet your specific circumstances.

Your family, employees, customers will be glad you did.

So, how do you find an "experienced" estate planning attorney?

First, ask around. Friends, family and other professional advisors are trustworthy sources.

Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").

Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.

How?

Two helpful online resources are just a mouse click away to assist with your due diligence:  Avvo.com and Lawyers.com.

Check any Avvo ratings, client ratings/testimonials and attorney endorsements on Avvo.com and any "peer ratings" by judges/other attorneys and any client ratings/testimonials on Lawyers.com.

In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: KRCU (June 17, 2018) “Business Succession Planning is Very Important”