Transition Plans Essential for Family Businesses | Law Firm Newswire

Transition Plans Essential for Family Businesses

Hook Law Center (formerly Oast & Hook)

Hook Law Center (formerly Oast & Hook)

Virginia Beach, VA (Law Firm Newswire) October 6, 2014 – Family-owned businesses face one of their most vulnerable periods when transitioning to the next generation after their founder’s retirement or death. More than 70 percent of family businesses do not survive this transition. But a transition plan can help preserve the business for generations to come.

Planning for the transition should encompass both the legal aspects of the process, such as tax and estate planning, and practical discussions with the family members who will take over the business.

“Neglecting to set up a transition plan is one of the biggest mistakes a family business can make,” said Andrew Hook, a Virginia estate planning lawyer with offices in Virginia Beach and Suffolk.

An estate planning attorney can help with the development of a transition plan, especially the legal and tax aspects of the process. The plan will always include a will, and it will most likely include a trust. A well-written estate plan can smooth asset transfers after the business owner’s passing, and it should account for the taxes associated with the process.

It is essential to get the rest of the family involved in planning the transition and running the business well ahead of the founder’s retirement or death. Family members can offer vital insight into the transition, and they should have a chance to learn the ropes in a steady, well-paced setting.

When discussing the transition with the rest of the family, business owners should make sure that everyone involved is on the same page. Discussion should determine who will own the company, who will and will not be involved and what tax strategies will be planned. Those family members who will take over the business will need careful training and support to take over the business with confidence and pride.

Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
Phone: 757-399-7506
Fax: 757-397-1267

5806 Harbour View Blvd.
Suite 203
Suffolk VA 23435
Phone: 757-399-7506
Fax: 757-397-1267

  • The Importance of Updating Beneficiary Designations
    Life is pretty hectic. Between work, personal commitments and family, it’s no surprise that we sometimes let important things slide from time to time. We know we need to get to them, but the days get away from us and most of the time it seems like these little things can just as easily wait [...]<p><a class="btn btn-secondary bravehart-read-more-link" href="">Read More...</a></p>
  • Stimulus Payments Belong to Recipient, Not Nursing Homes or Care Facilities
    Following concerns that businesses may be taking advantage of those who received an economic impact payment, the Internal Revenue Service recently notified nursing home and other care facilities that the recent stimulus payments received by many Americans generally belong to the recipients, not the organizations providing the care. This means that these payments do not [...]<p><a class="btn btn-secondary bravehart-read-more-link" href="">Read More...</a></p>
  • Planning to Transition a Small or Family-Owned Business
    Estate planning often involves the transition of a small or family-owned business to the next generation. Despite best plans and practices by estate planners and business coaches, this transition often fails, leaving dissatisfied families and employees in the wake of the transition. Unfortunately for estate planning attorneys, the failure of business transition does not lie [...]<p><a class="btn btn-secondary bravehart-read-more-link" href="">Read More...</a></p>
  • Beware of COVID-19 Scams
    Criminally-minded individuals will choose to take advantage of almost any situation if they perceive a possible benefit to them.  Unfortunately, the coronavirus pandemic is no exception.  As of June 4, 2020, the Federal Trade Commission estimated that coronavirus-related scams have cost Americans $46.2 million.  There are several scams related to the COVID-19 crisis that everyone [...]<p><a class="btn btn-secondary bravehart-read-more-link" href="">Read More...</a></p>
  • Protecting Personal Injury Settlements with Trusts
    Personal injury attorneys, and their clients, often seek the advice of elder law attorneys when complicated issues associated with Supplemental Security Income (SSI), Medicaid, and Medicare are presented in a case. Our role as an advisor in these cases has increased our involvement in planning associated with these very specific benefits, and subsequently, an increased [...]<p><a class="btn btn-secondary bravehart-read-more-link" href="">Read More...</a></p>

Tags: , , , , ,

Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required