Family Business

Many business owners today are so busy running their business that they do not take the time to address the future of their family business. Many owners are focused on growing and operating the business and issues involving retirement, death or disability are not on their radar screen.

With any business, there are always difficult business questions to answer. But with a family business, there are both emotional and business questions to answer. Some of the difficult questions that my clients face are as follows:

1. Has the child who is active in the business earned the right to receive the business, based on “sweat equity”?

2. At death, do the business owners intend to treat the active and non-active children equally?

3. Do the business owners fear resentment by the children who are not actively involved?

4. Have the business owners acquired other assets that can be used to “equalize” the inheritance to other children?

5. Who would oversee the business in the event of disability of the business owner?

While the typical estate plan will cover worst-case scenarios such as death and disability, an estate plan can also address the business owner’s succession plan and the division of assets at death. If you would like to talk to a Kalamazoo Estate Planning Attorney regarding this issue, please feel free to contact our office.