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Business Owner Without an Estate Plan? Better Start Planning! 沒有資產計劃的企業經營者？最好開始計劃！(中英對照)

“There is a lot to think about, when business owners begin estate planning.”

As business owners start thinking about the most valuable asset that they own, they need to make some major decisions about their estate plan: do they want to pass the company to the next generation or sell it? In both cases, says Smart Business in the article “Questions for business owners to consider when estate planning,” starting the process of planning needs to begin early to ensure a smooth transition.

If the owner waits until illness or disability occurs to begin planning, chances are good that it will be too late.

First, the business owner needs to determine, if the business should continue or if it should be cashed out. If the owner wants to see the next generation take over, the owner will need to take a candid look at how engaged various family members are in the business and if they can realistically manage and continue to operate it, without the founder at the helm.

If there are many family members—kids, in-laws, etc.—then roles need to be defined, so everyone knows their responsibilities.

If there are children who have no interest in being part of the business, then a decision needs to be made about how they will benefit fairly.

If one of the owners of the business is not a family member, the owners need to discuss how that ownership is going to transfer, when one of them departs. You’ll need buy-sell agreements in place, as well as a succession plan. What will happen if one of the owners becomes disabled or dies unexpectedly?

The decision to sell the business or plan for the non-family management team to control the business, needs to be made and acted upon. The management team needs to be on board with these decisions and everything needs to be in writing.

The biggest obstacle to smooth transitions for business owners, is failing to make a decision. If the heirs are left to figure things out and end up battling over shares of the business and responsibilities, the business will suffer, and the family is often left needing to sell an unprofitable business that has lost value.

Planning for a business owner to step down, should start once the business is successful and profitable. Having a succession plan, which also includes an estate plan, prepares for any unexpected occurrences and allows family members to get comfortable in their roles as future leaders of the business.

Speak with an estate planning attorney about your plans for your business to ensure that a successful plan aligns with your estate plan.

Reference: Smart Business (Aug. 27, 2018) “Questions for business owners to consider when estate planning”

 “當企業經營者開始進行資產規劃時，需要考慮很多事情。”

隨著企業經營者開始考慮他們擁有的最有價值的資產，他們需要對他們的資產計劃作出一些重大決定：他們想將公司傳給下一代還是出售？在這兩個案例中，Smart Business在文章中說 “Questions for business owners to consider when estate planning,” (企業主在進行資產規劃時要考慮的問題) 規劃過程需要儘早開始，以確保順利過渡。

如果企業經營者在疾病或殘疾發生之後才開始計劃，那麼很有可能已經晚了。

首先，業務經營者需要確定是否應該繼續業務或是否應該把它出售套現。如果經營者希望下一代接管，企業經營者將需要坦誠地看各個家庭成員在業務中的參與程度，以及他們是否真的能夠管理並繼續運營它，而無需創始人幫助。

如果有許多家庭成員 - 孩子，姻親等 - 那麼就需要定義角色，因為這樣每個人都知道自己的責任。

如果有孩子沒有興趣為企業工作，那麼就需要做出決定如何讓他們如何平等受益。

如果該業務的經營者之一不是家庭成員，當這人離開時，業務經營者需要討論所有權將如何轉移。您需要製定買賣協議以及繼任計劃。如果其中一位經營者意外殘疾或意外死亡會怎樣？

需要決定並採取行動，是出售業務還是讓非家族管理團隊掌控業務。管理層需要參與這些決策，所有決定都需要以書面形式確認。

企業經營者要順利過渡的最大障礙是遲疑不決。如果繼承人要自己解決問題並為公司的業務和權責而起糾紛，那麼業務將受到損害，而且家庭最後可能需要出售一個無利可圖的業務。

企業管理人在業務上取得成功並且有盈利後便應開始為退任作出規劃。制定繼承計劃包括資產計劃，為任何意外事件做好準備，並讓家庭成員適應未來的業務領導者角色。

與資產規劃律師討論您的業務計劃，以確保成功的計劃與您的資產計劃一樣。

參考: Smart Business (Aug. 27, 2018) “Questions for business owners to consider when estate planning”

 

Family Farm Succession Planning Needs Time and Goals

“The succession-planning process is complex and lengthy. To keep your eye on the ball and meet your goals, your family must meet regularly to foster good communication and trust.”

The future for a farm family depends on family meetings that involve all stakeholders. The likelihood of success is bolstered by meeting in a neutral location, holding short meetings on a regular basis and setting clear goals, according to AgWeb.com’s article “Family Meeting Fundamentals.”

Families who want to hold one meeting a year that covers every single aspect of the succession plan, end up with a room full of confused and sometimes agitated participants. Meetings that occur on a more frequent basis, are more likely to succeed, since the process is complex and takes time to work through.

Make sure to include everyone. Leaving out a family member, like a spouse, can create resentment and lead to angry side disputes. Don’t create trouble, where none is needed!

Be smart about selecting a date for the meetings to take place. Steer clear of holidays, as there are usually enough emotional pitfalls for most families to deal with, without adding the family business into the mix.

Select a neutral location, where everyone can feel comfortable and that is free of distractions. You really do want their full attention. Select a convenient pleasant location to make these meetings welcoming and attractive.

Set an agenda for the meeting, so you are focused on specific topics and tasks.

You may find you need an outside facilitator to help, if your group dynamics are not working well. If there’s one person who tends to dominate conversations during social gatherings and family meetings, it will be hard to be productive.

If you are working with an estate planning attorney who is experienced in family businesses and particularly with the special challenges of family farms, he or she may be able to help you run the meeting better than if one of the family members steps up to take the lead. You know your family’s dynamics best—if cousin Susan could never get along with her sibling Mark, having an outside person present, may make her think twice about hurling insults.

Reference: AgWeb.com (May 29, 2018) “Family Meeting Fundamentals”