Keeping the Family Business Healthy:
Four Keys to Success
by Karen Vinton
Family business plays a major role in our economy. It is estimated that over 90% of all businesses are family-owned or controlled. These businesses contribute almost 50% of our nation’s GNP. Yet what are the typical stereotypes that surround these businesses? We frequently think of “Mom and Pop” stores, the undeserving child who inherits the business, the family squabbles which end up in court, and family businesses as portrayed on TV and in movies (Bonanza, Dynasty, etc.).
Many of these stereotypes tend to be very negative and may lead us to make wrong decisions about our own family businesses. In fact, some consultants and business experts say the way to “save” a family business is to take the “family” out of the business! But is this practical advise?? NO!!! More…
Choosing an Executor and Trustee
with a Family Business
by Kevin M. Flatley
Director, Estate Planning
The Private Bank at Bank of Boston
For over twenty-five years, I have been involved in settling estate planning issues with Bank of Boston clients who own a family business.Over this time I have seen a dramatic change in the way clients choose an executor and trustee.
Early in my career, lawyers and other trusted family advisors routinely suggested a bank trustee, and it was usually a wise choice.The bank settled competing family claims to the business and other assets; advised the family of the future course of the trust; and invested the trust wisely.The bank also accounted to the state and federal tax authorities and the probate court, if necessary.Everything was done in one location, and a most disruptive time in life became somewhat settled.
In the past ten years, though, lawyers and other advisors came to realize that with a bank trustee, “control” passed to the bank, and other advisors were forced into the sidelines.Aware if this, the lawyer as trustee stepped forward.This trend toward lawyers as trustees in itself is not unsettling as some of Boston’s large law firms have been managing trusts for almost as long as some of the “younger” Boston banks. More…