Planning For the Unexpected: Family Business Estate Planning
Most family business owners think they are “always� going to be in charge & they like it that way. That’s no surprise, to run a business you need to be strong, energetic and willing to do whatever it takes.
Seventy percent of the businesses in Australia are family owned. That’s why it is so critical to start thinking about some of these decisions regarding estate planning. Especially planning for the unexpected – when you make an unexpected transition and need to hand over the business.
Some don’t like to think about the tough times in life. But by planning for them, you know you’ve got the steps to protect yourself and your family, to give everyone a much softer landing. The most common unexpected transitions for a family business owner can be divorce, a serious illness or even the death of the owner. So you’ll want to consider how each of these might affect what you would want to happen to your business.
Ozzy & Sharon Osborne, popular rock star couple, recently announced their divorce after 33 years of marriage. Even Hollywood was surprised by the split, where marriages typically don’t last for long. But remember – the Osborne’s have had a reality TV show together for years, many would consider that to be a family business. A family business owner needs to plan for the unexpected such as a divorce whether you are recently married or have been married for a long time.
Good health is a blessing but illness can happen at any time. This is often a common reason a family business owner needs to make a transition, because they simply can’t run the day to day operations of their business any longer. It is tough on them and everyone if there is no pre planning in place to help make decisions.
No one likes to think about their own death. But when you run a family business, you provide for your family and often other people’s families as well. You have a mature responsibility to care for these people as best you can, to create a plan that will help continue your business. The family business that you’ve grown is your professional legacy and people will remember you with pride and respect.
Estate and business succession planning is a complex subject that requires specialized knowledge. Because of how important it is to get this right, we now have our own specialist in Estate Planning and Business Succession. Call the office today to arrange a meeting – before it’s too late.
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