Will you be a Survivor
by Diane Denslow
Studies indicate that only one third of family businesses make it from the first to the second generation yet a majority of family business owners intend for their businesses to continue. What happens? Most businesses are sold to non-family members due to a lack of planning. The following are key areas to address if the family business is to remain viable and in existence for future generations.
Plan for a transition of leadership. A family business owner should begin this planning for transition a minimum of ten years prior to the time they plan to leave the business. Family members that will be taking over the management of the business must be prepared for their respective roles. This means giving them increasing areas of responsibility and the opportunities to develop the required skills so they are ready to take the reins when the appropriate time comes. More…
Elegant Estate Planning:
Lessons from the Will of Jacqueline Kennedy Onassis
Related Matters Newsletter
by by Susan E. Kuhn
Reprinted with permission of FORTUNE magazine © 1994 Time Inc. All rights reserved.
Leaving property specified exactly who would inherit each of her real estate properties. Homes are laden with emotion and should be disposed of directly, not lumped into total assets.
Creating trusts put the bulk of her estate into a charitable lead trust. The trust gives money to charities for 24 years, then the rest goes to her grandkids. A charitable lead trust is a good way to give money to heirs who don’t need the income immediately. The donations to charity reduce the estate’s taxes.
Making personal requests gave her personal property and letters to her children and requested that they respect her wish for privacy. When giving gifts of valuable personal property, make your wishes known but allow the beneficiaries some flexibility. More…