Family and Business Succession Planning

No company can survive without an able owner, executive, or shareholder at the helm. In the event of a key member’s sudden death, illness, or retirement, businesses are often left scrambling to recover lost assets and find a replacement. Large corporations and family-owned businesses large and small alike can avoid a tumultuous transition by creating a succession plan with a knowledgeable attorney. Planning can designate a competent successor, a successor will be named who will be able to guide the business and family members through the transition, reassure employees about their job security, and put safeguards in place to protect the company from loss. 

Our firm regularly assists families with sophisticated planning strategies, including Family Limited Partnerships or Limited Liability Companies, Personal Residence Trusts, Irrevocable Life Insurance Trusts and a wide range of charitable gifting techniques to reduce Federal Estate Taxes, Gift Taxes and Generation Skipping Transfer Taxes. 

Our firm has a solid working knowledge of:

  • Domestic and offshore trusts;

  • Domestic and offshore business entity formation;

  • Exempt asset protections under state law; and

  • Negotiation and preparation of pre- and post-marital agreements

The exact strategies employed by our firm may vary depending on the client, the nature of the assets, the country of origin, and the tax regulations that apply to those assets. The ultimate goal is to protect the status of current assets in a manner that is effective, legal and ethical.

Testimonials

“GFJ has helped our family and our family business through tough times and good times. We’re regularly checking in with their team to make sure our succession planning and estate planning are on track and we greatly value their advice.”

- Ken and Dick Braden | Braden Farms

FAQ

Q: What is family business succession planning?

Succession Planning in an ongoing process that needs careful planning and preparation for smooth transition of ownership, leadership and management of the family business and family assets to the future successive generations, and wealth transfers that carefully contemplate and work to reduce tax consequences for future generations.

A strong successful continuity plan can foresee the challenges faced by the family members and shareholders. Structures are put in place to ensure strong leadership, effective decision making, and to protect family wealth and family relationships.

Q: Why is succession planning needed?

Business Families need to build structures for the success of the future generations. Continuity and long term planning are critical for achieving a long term legacy, by defining when family members can start working in their family businesses, which family members can serve on boards and defining a plan for the next generation leadership from the family or even outside.

Some business families make the mistake of avoiding discussing continuity and succession planning to keep the family tensions at bay and live in peace for the moment. Continuity is critical for the legacy of the family and the business, supporting business growth and reducing the mental impacts on the employees. A well thought out strategic plan can provide immense stability to the family business management and avoid any challenges and tensions during the passing of the baton to the next generation family members.