For the business owner in Ohio and elsewhere, decisions have to be made regarding the succession of the business and the distribution of its wealth after the owner’s death. Although it seems at first blush controversial to say, it may be that one’s children are not the best beneficiaries to take over the ongoing business. Where the children have had little or no interest in the enterprise, it may be more appropriate to set up estate planning measures that will give one’s heirs the economic benefit of the business while transferring the business operation to a trusted key employee or associate who is well-suited to carry on the company’s legacy.
One’s heirs may still receive the benefit of the legacy assets. Succession management and planning will not dwell on one’s family members but will focus on hiring the persons best qualified to run the business. It will also formulate a plan to put in control a trusted individual who will manage and distribute the economic benefits to one’s family. The two roles, managerial and financial, may be different in key respects and paying attention to the distinction can prevent conflicts and or even serious obstacles.
Thus, the owner may create a succession plan for management and control of the company while maintaining a funnel of financial benefit to the family. In this way, the business can continue after one’s death to provide the legacy assets that the owner developed in the form of a successful and vibrant business with unique products or services. At the same time, an assured payment of financial benefits will flow to one’s heirs.
This can be part of the estate planning process in Ohio for the business owner who wants to see the business continue to carry on the intended legacy. With satisfied managers and partners enlisted into the managerial and financial functions, the company will be positioned to carry forward its evolving mission. With the assistance of an experienced estate planning attorney and a financial advisor where appropriate, a business founder and owner can find the right estate planning approach for the company that represents a lifetime of creative effort.