For family-run firms, a crucial concern centers around ensuring the longevity of the business they’ve spent years building and the assets they may have accrued. It usually means the process of prepping children to take over the business itself, as well as any assets in the firm’s portfolio. NREI consulted with attorneys specializing in succession planning for tips that family-run businesses may want to keep in mind.
Among the chief goals of succession planning is providing continuity of management, in addition to minimizing the tax costs of transferring property interests to new generations, according to Bruce W. Tigani, attorney and chair of the tax, estates and business practice group at Morris James, a law firm based in Wilmington, Del.
“Succession planning ensures the business has the capability of continuing profitability in case something happens to the owner or in case of death,” says Todd Hoppe, attorney and co-practice group leader of the business and corporate practice group at Grand Rapids, Mich.–based business law firm Foster Swift.
This gallery has been modified from the original that ran on sister website NREI Online.