By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Estate Planning Attorney
How does a business owner address their Estate Planning when they own a successful business? In one case a client’s adult daughters want to inherit the family business, but their adult son isn’t the least bit interested. Here’s their dilemma: How can they create an estate plan that lets the daughters take over the business, yet still provide an equal share of their estate to each child?
Theirs is a common question and dilemma. Practically they may not be able to divide their estate so as to make each child’s inheritance exactly equal, but they can make sure that each child gets a fair and equitable share. The parents should create a business succession plan. The plan should include timetables, identify management roles and ownership roles, etc. The business succession plan and personal estate plan must be coordinated. All of their assets have to be evaluated along with a multitude of other factors, to ensure each child gets his/her fair share.
Obviously a parent will not want to sell the business out from under their daughters to generate funds for their son’s inheritance. Insurance could be a useful solution to that problem. Also, if the daughters are currently working in the business, the parents will want to assess whether they deserve some degree of “sweat equity”. Yet another variable to evaluate is whether they rent or own the space their business occupies.
Since we here at Hanlon Niemann & Wright are experienced attorneys with estate planning and business succession planning, we can help sort through these issues.
For more information on Business Succession visit our dedicated website at: https://www.passingonabusiness.com/
To discuss your NJ Estate Planning matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at email@example.com. Please ask us about our video conferencing consultations if you are unable to come to our office.