You must plan ahead for the transfer to be successful. You’ll want to create strategies for all aspects of the transfer.

  • Family: Establish the family members’ roles in the company, taking into account each member’s desired level of responsibility.. Explain what is important to the family in relation to the business. You may wish to create a procedure for family members that leave or enter the company.
  • Business: Set some agreed-upon goals. Make sure everyone knows the direction of the company.
  • Succession: Create a plan for the transition to the next generation. Explain how you’ll decide when the next generation is prepared to run the company.
  • Estate: Without an estate plan, the business may be subject to far higher estate taxes, which disadvantages the successors. Plan for a tax-effective transition.