Business Succession & Estate Planning
The key to successful business succession and estate planning is to have clear instructions that adequately reflect the party’s intention in how their business or property may be divided, passed on, donated or used. More often than not, individuals may find themselves in a situation with no knowledge or experience of how to execute these plans.
Business succession is the process of providing for an easy transferral of a business from one party (owner) to another. In doing so, there are some barriers that may inhibit this success including the continual operation of the business and maintaining pre-existing relationships. Additionally, trying to limit the incurrence of fees such as tax and stamp duty is tricky.
Like most successful business ventures, you must have a plan.
This plan needs to provide strategies of implementation of how you will transition from one business to the next. This plan will include how to solidify and maintain the value of the business as it stands to ensure the same business is delivered to the next party. It must also have instructions on how you intend to change the ownership without incurring many costs.
Often this can be a job for a professional who can assist with intricacies of business succession.
Thinking about how you want your estate divided can be a complicated process. More so when there are many parties to consider such as spouses, children, relatives and the like. At the transferral of estate there will always be challenges and therefore it is important to implement an effective plan that minimises confusion of parties and sets our clear instructions.
Some considerations to make with the help of a professional relate to limiting tax payable, transferral of appropriate assets to the allocated beneficiaries and the protection of assets in the event of legal complications. Whilst families may agree prior to the event that there will be no animosity and complications, estate planning provides a secure and safe representation of how you wish your estate to be passed on.