A few weeks ago, we discussed the importance of succession planning. Anyone who owns a business should have a plan in place to pass that business on to someone else or appropriately close up shop at the right time. Most people don’t want to work full-time, even in their own business, until they die. As important for planning for yourself in this regard is helping others who may need to extricate themselves from a business.
For children or other relatives with older loved ones, it’s not always easy to understand how best to provide such assistance. First, you have to decide as a family whether the business is going to stay open and if someone in the family is going to take the helm. It’s tempting to agree to such an honor to please your loved one, but it usually doesn’t work out to anyone’s benefit if you take a position you aren’t suited for.
Another consideration when assisting an older relative with a business can be that person’s state of mind or physical ability. Even someone who is just approaching retirement age can experience a serious health issue, and those that work on their own businesses well past retirement are at greater risk. Family can work with an elder law professional to best understand how to legally assist someone who has become incapacitate while still owning a business.
Our firm works with families and businesses on a number of matters, including both estate planning and business succession. Whether you’re looking to get involved via power of attorney or need to find out how to help a loved one sale his or her business, we can help.