A study showed only 30% of family owned businesses survived into second generation, 12% survived into the third and only about 3% of them survived into third generation and beyond. How much have you done for your own company business succession ?
For business owners, challenges do come in day in and day out. Decision have to be made fast and accurate to make sure they are ahead of the race. As a human nature, we always think we will lived forever and ignore the reality that death is certain. This is one of the reason people procrastinate.
The second reason is some of the business owner still unable to decide whom shall take charge among all the children ? Will the selection of a new successor create interpersonal acrimony? Or should I sell my business once I pass on due to my children not interested in my business ?
Historically, trust is an effective way in business succession planning and wealth preservation. Trusts play a vital role in succession planning for reasons of tax efficiency, creditor protection, and centralized management of family assets.
A Trust is a process where the owner of the trust (Settlor) pass the ownership to another party (Trustee) for the benefits of a third party (Beneficiary). A Trust help businesses to continue without any difficulty after the passing of the owner. It is a great way to keep the family together as one. Besides, trust help to provide lifetime care for their spouse, young children and aged parents. Assets held in trust can prevent mismanagement, reduce the risk of getting scam, act as business preservation and protection to family in the event of insolvency.
For more in depth discussion, do contact us now.
Take charge of your wealth now. If not you, who else will ?