Why Business Owners Need a Succession Plan
When one of our client’s grandfathers died, she lost not only her beloved Pop-Pop, she lost much of the rest of her family as well. Why? His lack of succession planning caused a family rift that continues to this day.
Succession planning protects a company’s future by developing key employees to take the reins of the business in the event of the retirement or death of the CEO or other high level employees. A written plan can guide a company once the leadership moves on. This plan should be formulated with the assistance of an attorney to insure all legal concerns are addressed.
When our client’s grandfather passed away, his plans for the family business had not been discussed with his heirs, nor had they been documented in his Last Will and Testament. This lack of communication caused quarrels over money and the business, ultimately causing irreparable harm among his children. One family took over the business; one started a competing company. Siblings stopped speaking. Cousins never met.
Had “Pop-Pop” simply made his plans for the business clear to his family by working with an experienced estate lawyer who also has business background like William E. Vinsko, Jr., or Catherine Mihalick, CTFA, the family rift – and much heart-ache – could have been avoided.
Avoid family feuds by writing a Will. If you own a business, make your plans clear with a Succession Plan.