Preserving Your Family Business for Your Children

Preserving Your Family Bu…

About 90% of the businesses in this country are family-owned or family-controlled, and they are not necessarily just small businesses. These family businesses generate an estimated one-half of the U.S Gross National Product and are responsible for paying as much as one-half of all ages earned in this country. However, despite these statistics, many family businesses do not outlive their founders. This is to say that two-thirds of all business transfers fail, and only one-half of those survive an initial transfer will survive a second transfer. As a result, it is essential that you have a strong business succession plan in place as part of your estate plan. This step can help you ensure the longevity of your family business beyond your lifetime.

When you are no longer able or willing to operate your business, whether it be through retirement, illness, injury, or even death, you need a plan that specifies what happens to your business. If you don’t take this step, then the business that you have worked so hard to build over the years can quickly collapse. For instance, who will continue to run the business after you are gone? Will your spouse, children, or a non-family member manage the business? If your spouse is not actively involved in the business, is it still necessary for his or her support? If one child is active in running the business and your other child wants nothing to do with it, how do you treat them equally and fairly in your estate plan? Will your children’s spouses have access to or profit from the business, and what happens if they later divorce? These are all important questions that you must answer as you go through the process of business succession and estate planning.

The Ann Arbor business succession lawyers of Legacy Law Center are experienced in ensuring that you have the comprehensive and up-to-date estate plan in place that incorporates your family business. We are your trusted advisors who are skilled in looking at all facets of your life, evaluating your needs, and working collaboratively with you and your family to create a sound and effective estate plan. Contact Legacy Law Center today and learn how we can help you make the right decisions for you and your family.