The most critical cause of the failure of the family-owned business is inadequate estate planning or no estate planning. Once mom and dad die, who will inherit the business? How do the kids obtain legal ownership of the partnership or stock shares held by their deceased parents? Does a probate action have to be filed to obtain this ownership? Who runs the business while the ownership is being determined by the probate court? Who will be responsible for paying the estate taxes if they apply? What assets will be available to pay the estate taxes if they are due upon the death of mom and dad?
The answer to all of these questions can be found in the TrustLockUSA Estate Planning System: a properly prepared revocable living trust.
SUCCESSFUL SUCCESSION OF A FAMILY BUSINESS STARTS WITH A REVOCABLE LIVING TRUST.
The best succession planning for a family-owned business starts with a properly prepared revocable living trust by the current operators of the business (typically mom and/or dad). After its creation, the Trust becomes the legal owner of the business stock or partnership shares. The Trust distribution provisions outline which if not all of the family members who will receive the share ownership of the business. The Trust outlines the Successor Trustees who will be responsible for the transfer of the legal ownership of the company to the next generation.
The TrustLockUSA Estate Planning system helps you to create all of your essential estate planning documents. Our Cloud-based system securely gives you and the loved ones you assign, access to all your important legal documents anytime, anywhere in the world using your computer or smart phone.
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