Business owners in Florida may feel as if they have either to pass down their companies to their children or sell them. However, it may be possible to allow future generations to benefit from the success of a business even if they aren’t the ones running it. Those who own a company may want to first determine if their children are qualified to run the business.
If not, it can be a good idea to talk with key employees or other advisers about a succession plan. This plan will determine who takes over the company after the current owner chooses to retire or otherwise walk away from it. By keeping the organization alive, it allows an individual the chance to maintain his or her legacy while also ensuring that the company is run properly. It is important to consider relationships between family members when creating a succession plan.
Even if a child or grandchild is capable of overseeing the family business, those dynamics may make passing the company to that person a mistake. Ideally, a business owner will think about the type of legacy that he or she is trying to leave behind when creating both estate and succession plans. Understanding what that legacy will look like can help guide a person in creating a plan that works now and in the future.
Taking time to engage in estate planning activities is generally a good idea for business owners or anyone else. By creating a will, a person can gain more control over where his or her assets go after he or she passes. The same may be done with a trust, pour-over will or other estate planning documents. An attorney may help a person create these documents or review those that have already been created.