Family Business Succession

Financial planning evolves investments, taxes, insurance, retirement and estate planning. It often boils down to how to build and protect your assets so you and your heirs can enjoy the fruits of your labor.

Business owners are faced with typical financial planning topics as any individual might encounter, however the business owner financial issues are intertwined with running a business.

Family business succession planning includes different planning elements including goal setting for the transition process, creating a business plan, determining whether the business will passed within the family or sold outside the family.

The transitioning process also includes a financial plan after the transition and reviewing the lifestyle needs for the retired owner.

The goal is to create a plan that addresses your financial security and the needs of your family and your heirs.

When considering the business itself, you have to balance your personal issues as well as the strengths and weaknesses of your business. Weight the impact on management and employees along with your vendor relations.

The main focus of the succession plan is asset preservation, taking care of the family and heirs; the creation of financial independence for yourself. Review your core values, set goals and prioritize those goals.

Estate planning will be part of the process to minimize taxes and assist with the transfer of the business. In addition to the business transfer, you may also wish to review a “gifting” policy to remove assets from the estate.

The final stages of the succession process are the planning for life after the transition and achieving lifestyle balance.

Below are a few estate planning articles you might find interesting:

• Should You Accept That Estate Planning Seminar Invitation? | The … – I recently received such an invitation in the mail. Clearly this was a mass mailing of some sort. I’ve received several similar invitations in recent years. While tempted to check one of these sessions out from a professional …
• Estate Planning: Beyond Taxes « The KC Estate Planner – Conrad Teitell, a noted tax and non-profit lawyer, has these helpful tips to remind people that while a good estate plan will minimize or completely avoid taxes for your and your family, estate planning is about more much than …
• Estate Planning – Understanding Planned Giving and Proper Gift … – Understand how to plan for gifts in your estate to non-profits. Gift designations, gift vehicles and proper gift language are also covered in this article.

Daniel Iuculano, AAMS CMFC

Accredited Asset Management Specialist

Chartered Mutual Fund Counselor