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A company is not able to survive without an owner or manager. Companies often have to scramble for the right person to replace the owner or the manager in the case of their death, sickness, retirement, or other unexpected circumstances. Both small businesses and large corporations may be able to avoid these issues in the transition with a succession plan in place.
At New York Legacy Lawyers, business succession planning lawyer Yana Feldman and our team of New York estate planning attorneys may be able to help you prepare for the future of your business. With our experienced team, you can create a business succession plan to help prevent business disruption due to these unfavorable circumstances. We may also be able to help you with special needs planning and planning for your children’s future.
To schedule a consultation in New York, contact us today at (718) 713 8080.
A succession plan is a document that outlines the rights and obligations of shareholders or owners. If a shareholder or owner does not have one, their stake will be either transferred to the family, taken by another shareholder, or both. Family-owned businesses are more likely to have disputes among relatives. Some people feel more entitled to larger shares if they are involved in running the company’s day-to-day activities than others.
Clients and employees in larger companies may fear sudden instability without a succession plan in place. Also, if the remaining shareholders have not planned properly, they may lack the resources necessary to buy shares of the deceased shareholder. This can lead to a situation where a spouse or child of a deceased shareholder attains an ownership stake in the company which can result in disputes, stalling progress, and possibly leading to a loss of assets.
Furthermore, the replacement for the departing shareholder may not be able to perform their role properly because of time constraints, especially if the departing shareholder had management duties.
At New York Legacy Lawyers, we can assist shareholders and owners in putting together a plan that can help facilitate a smooth transition. We work with our clients in consulting with employees, families, shareholders, and other stakeholders to create a personalized succession plan.
You can tailor your succession planning to any kind of business model. For your succession plan to be effective, it should address the following matters:
At New York Legacy Lawyers, we can also help you make arrangements to allow the executive to have his or her interest transferred into trusts so that they are paid to their loved ones. You can also divide assets between employees. In some cases, it may be advantageous to sell the company. Given the many stakes involved, it can seem overwhelming. We may be able to assist you in protecting them. It’s been hard work to make your business successful. We’ll help ensure it thrives no matter what happens in life.
Our skilled estate planning lawyers at New York Legacy Lawyers are also well-versed in business law and business succession planning in New York. We may be able to help you. Contact us today to schedule a consultation and to learn more about estate planning or business succession planning.
When identifying potential successors, business owners must consider several factors. One of these factors is to determine if there are any capable successors. While many owners hope to see their children take over the family business, if they are too young or inexperienced, someone else may need to operate the business until they are ready. Sometimes, utilizing a provisional holding arrangement can offer adaptability when dealing with planning concerns in the future.
Additionally, when choosing from a pool of potential successors, there are other factors to consider. In family businesses, there may be several family members with varying degrees of skills and areas of expertise who can take over the succession. Adopting a policy of treating everyone uniformly and presuming that they will “figure things out” can breed emotional strife within the family and deter family members from assuming extra duties.
There are instances where the most suitable candidate to succeed the business owner may not even be a family member. Hence, it is crucial to motivate and incentivize this individual appropriately to ensure their commitment to the business, both currently and post-owner’s exit. This can be accomplished by employing contracts of employment, phantom stock, stock appreciation rights, deferred compensation, or other incentive schemes that enable the successor to partake in the company’s growth and success.
Finally, the timeline for the owner to transfer control is an important consideration. The transfer of ownership for some proprietors does not entail a precise moment where they relinquish full control and cease their involvement in the enterprise. Instead, they collaborate with their successor closely as they undergo the transition process, serving as mentor figures. Even when the owner no longer holds the reins, they may continue to participate in planning and strategic activities, like taking on a board of director role or supervising the advancement of particular operations or business sectors.
Our team of experienced attorneys at New York Legacy Lawyers may be able to work with you to identify potential successors and ensure that they are adequately trained and prepared to take over the business. We will also work with you to create a detailed timeline for the transition, ensuring that all parties are on the same page and that there are no surprises. We may also be able to help you with estate planning and other estate planning-related matters such as probate and estate administration in New York. To learn more about business planning and estate planning, contact us today.
Business owners can pass down their business to heirs, partners, or shareholders. To ensure their wishes for the business are honored in the event of their passing, they can seek the assistance of business succession planning attorneys who use estate planning tools. A comprehensive estate plan coupled with strategic use of estate planning tools can help minimize the negative effects of sudden leadership changes within an organization.
In New York City, experienced attorneys can assist with identifying the most suitable tools for each business owner. These tools may include trusts for business interests and assets, estate planning tools such as wills to dictate the children’s role in the business, insurance products to facilitate buy-outs by co-owners, agreements addressing continuity of operations, valuation of stock, or rights of first refusal.
Furthermore, attorneys can evaluate different tools for incentives to encourage key employees to continue contributing and can help minimize tax impacts. It is a good idea to create an estate plan if you own a business because an estate plan can help you ensure that your preferences are honored in the event you pass away. You can also review your estate plan from time to time to see if they still address your business interests.
At New York Legacy Lawyers, our team of business succession planning attorneys understands the importance of preparing for the future. Our business succession planning services are designed to give you peace of mind and ensure the long-term success of your business. Contact us today to schedule a consultation and learn more about how we may be able to help you create a customized business succession plan that meets all your needs.
An estate planning attorney who is also well-versed in business law can help business owners efficiently plan their future. A skilled estate planning lawyer can help with contingencies for retirement, disability, and death. The business may close down if it doesn’t have proper direction and assets can then be divided according to law instead of the business owner’s preferences.
Estate planning lawyers understand the law surrounding business succession and can help business owners prepare for unexpected events. A lawyer has the knowledge to use different estate planning tools such as a power of attorney or a Will or Trust to help the business owner create a comprehensive plan.
Many family-owned businesses avoid succession planning to delay difficult family discussions. With the help of business succession lawyers, owners can identify areas of vulnerability and groom emerging talent, plan an exit strategy, and create individual estate plans to suit the business’s needs.
Our law firm, New York Legacy Lawyers, has a team of estate planning attorneys who may be able to assist you when it comes to planning the future of your business. Our team of New York business succession plan attorneys understands the importance of being prepared for unexpected events in our lives. We may be able to help you with your succession plans for your business.
We also handle other estate planning-related matters such as special needs planning and Medicaid planning.
To learn more about estate planning or business succession planning, contact us today at (718) 713 8080.
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Phone: 718.713.8080 | Fax: 888.353.4088
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