Talking to your kids about who takes over your family business can be emotional. If you are currently running the business, you must set a date for when you will exit the business. And your adult children can worry about how they can match or surpass your management performance to avoid criticism.
Succession plan creation helps reduce turbulence as the business transitions. Having a plan makes sure you have discussed the details of the sale with your bank. Also, you must make sure the new family chief executive officer is prepared to take over. To guarantee successful business succession planning, you need a reliable Litvack Dessureault LLP avocat succession to assist you. So, what is the lawyer’s role in succession planning?
Analyse the Corporate Structure
When began your business, you probably hired a lawyer to help you with incorporation. An excellent lawyer will help you file the correct documents and establish the right legal structure. Your business succession lawyer fulfills similar obligations. When you develop a succession plan, your lawyer will scrutinize the current legal structure of your company and determine changes to pull off your plans.
Identify Possible Liabilities
Lawyers uncover vulnerabilities in the underlying documents in the company. A business lawyer finds guarantees in internal or third-party contracts. Should a business default on such guarantees following the move of the original owner, the new owner may be liable for losses. Your lawyer will make sure the business stays compliant with all contracts and agreements.
Handle Estate Planning
Business succession plans and the estate plans of the owners are intertwined. Your lawyer understands the intestacy laws, which determine how assets are distributed when there is no estate plan. Also, they can advise on issues that intersect with the estate planning documents such as the wills and trusts of the owner.
If you have a partnership agreement, your estate must reflect this agreement. By having a will in place, the Executor will make decisions for you and you give them instructions on your business interests.
If you pass away without a will, no person will have the legal authority to act on your behalf or handle your business interest. The court will appoint an Estate Trustee Without a Will to handle these matters. Thus, the absence of a proper estate plan will result in your family going through this expensive, long, and complicated court proceeding. Your attorney can help ensure your family does not have to face these challenges.
