When you are building your family business from scratch and taking it to immense heights, it is a matter of pride. Without dedication, passion, and confidence, it cannot be done so easily. Therefore, one needs to have firm succession planning to protect and preserve the business. This planning, just like anything else, can be done best when addressed by a professional. But in that course, one needs to answer a few of the most important questions to get everything right.
Who will take over when you are gone?
- Irrespective of the situation you are planning in, this is one of the most important questions you need an answer to. You might be planning it well in advance or might be planning after an unexpected tragedy, the answer needs to be provided.
- Who is ready to step into the business if you die unexpectedly?
- In such situations, will your family have fast access to funds to hire immediately?
- Is the family protected against financial risks after you are gone?
How much control would you like to have back?
- Do you know that after you are gifting your property to the beneficiaries, you can still hold back some of the power over your business?
- Are your estate planning documents well-synced with business succession plans?
- Are you letting your beneficiaries gain management experience well before handing them the responsibilities?
- Will you be in the majority if your business is getting managed on a majority rule basis?
What arrangements do you need to consider?
- Are you present with a mandatory buy-sell agreement if your co-owners die?
- Will the buy-sell agreement be covering all of your potential situations including death, incapacity, bankruptcy, or retirement?
- Are you aware of the ways to reduce the conflicts between siblings after cases of premature death or incapacity?
What about the taxes?
- Do you know the changes in the estate taxes when the generations are changing?
- Are you already in touch with an estate attorney to ensure the matters of accounting, investments, or insurance for liquidity?
- Do you understand that the decisions you are taking today will be affecting the gift at rates?
- Are you aware of the best strategies that you need to reduce the taxable estates even while you have control over the business decisions?
The Litvack Dessureault LLP avocat succession will need to know all these answers in detail in order to craft for you the best succession plan.