Succession Planning for Your Family-Owned Business

by Andy Gutwein

It takes a lot of hard work and dedication to build your own business. When the time comes, you may like to keep it in the family. Having a succession plan in place will ensure that the legacy of your business will live on in accordance with your wishes. As you begin thinking about your options, you may come to the realization that your children aren’t yet ready to take over the business. This raises a number of additional questions: What will happen until my children are ready? What if they aren’t interested? What will I do if they aren’t?Creating a succession plan affords you a number of options that can be customized to your unique wishes. Take, for instance, the above scenario. Wouldn’t it be ideal if you could wait until your child is ready?

One of the tools we use when the situation is right is the Contingent Stock Acquisition Trust SM (CSAT SM). This option lets you keep your business in the family while allowing your children to have a say when the time comes without forcing them into an uncomfortable situation.

Having a plan in place for your business is critical, especially if you plan on passing it on to your children. Exploring options, such as the CSAT SM, reduces future risk and puts you in a position of greater control. Your business is unique; you shouldn’t use cookie-cutter plans to protect it.

ABOUT THE AUTHOR – andy gutwein

Andy Gutwein is co-founder and an attorney at Gutwein Law. His practice focuses primarily on estate and succession planning and administration. Prior to earning his J.D. from The George Washington University in Washington, DC, Andy obtained a BS in Economics, Honors Program, from Purdue University. He is currently serving on the Board of Directors of Westminster Village of West Lafayette, Lafayette Police Foundation Board of Directors, and Community Foundation Fund Devleopment Committee.

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