Every business owner of all sizes should consider a business succession plan as part of their estate planning strategy. Transitioning ownership to a future generation or another buyer can be especially complex, particularly if you have not taken proactive steps to address succession concerns before you step down.
Owning a real estate business comes with its own unique considerations. It is important that you take time and effort to build a strategy aligned with your real estate business succession plan. All too often, failing to do so can expose future shareholders or family members fighting over business interests.
You can save money and avoid additional family conflict by using the transition succession planning strategy. There are several important issues that you want to address in your business succession plan. The first of these should be sudden events, such as a divorce, death or sudden disability. The second is to consider a more strategic and intentional transition that can be orderly if you decide to step away in the future.
Don’t forget about important issues, such as estate taxes that may apply for the business or individual after a person passes away, and concentration of how your business assets are diversified. If the properties in your current portfolio only appeal to a single vendor for management or younger renters, this could expose you to unnecessary risks. Schedule a time to meet with a qualified business succession planning attorney in Pasadena to learn more.