If you’re creating a business succession plan as part of your estate planning process, it’s essential to avoid making assumptions. One of the most critical mistakes business owners make is assuming their adult children want to take over the family business.
For instance, perhaps you started a family restaurant 20 years ago. Achieving your dream of owning a restaurant has brought you great pride and fulfillment, and you’ve always assumed you could pass this viable, income-generating business on to the next generation. From your perspective, it seems like a gift anyone would want.
However, it’s common for adult children not to share that vision. They may feel the business doesn’t align with their goals or aspirations. They could have plans to pursue success in an entirely different field or industry. In some cases, they might prefer the opportunity to carve out their own path, rather than follow in your footsteps.
What can you do about this?
The most important step is to discuss your succession plan with your adult children. Avoid naming someone to take over the business or leaving it to them in your will without first having a conversation. These discussions allow you to gauge their interest and ensure the plan aligns with their goals.
If your children are interested, having these conversations early also provides an opportunity to involve them in the business and offer hands-on training. This can make the eventual transition much smoother and more successful.
These are just a few considerations to keep in mind when planning for the future of your business. Be sure to explore all your legal options to create a well-rounded and effective succession plan.
