As a business owner, you want to ensure that your business is in good hands at all times, especially in the unfortunate event that you pass on. With this, you may be wondering whether passing your business to your children or family members that already work with you is the best decision to make. Follow along to find out if and how to pass your business to your heirs and how one of the proficient New York City estate administration attorneys at Zimmet Law Group, P.C., can lead you in the right direction.
How do I know if passing my business to my heirs is the right decision?
Before moving forward with your business succession plan, you must be sure that passing your business to your heirs is the best decision. It may seem natural to do so if your children or family members already work with you, but below are some scenarios in which this may be a negative:
- Your involved children or family members suffer through a power struggle.
- Your designated heir may not be business savvy, which may cause your business to decline.
- Your designated heir may not want the responsibility, which may cause them to sell your business.
With all that being said, sometimes it is best to pass your business to another co-owner, employee, or outside buyer.
How do I pass my business to my heirs?
Ultimately, if you decide that passing your business to your heirs is indeed the best decision, then you must proceed with completing your business succession plan. The steps that you must take are outlined below:
- Assign an heir: it may not be so obvious as to who should lead your business upon your passing if you have multiple children and family members working for you.
- Make clear instructions: so, if you have multiple children and family members working for you, specify the one who is to take over your business, along with who will be compensated otherwise.
- Consider a buy-sell agreement: you can give your children or family members, who are not necessarily active in your business, the opportunity to sell their shares to others.
- Consider the future leadership structure: you must not only specify the one child or family member who is to lead your business but also specify the rest of the leadership structure moving forward (i.e., each person’s day-to-day leadership responsibilities).
For more information, contact one of the talented New York City wills, trusts & estates attorneys today.
Contact Our New York City Firm
If you require the services of an effective New York City attorney of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, or landlord-tenant law, contact Zimmet Law Group, P.C. today to schedule a consultation.