No matter how large a company you own: death, disability, divorce or the incompetence of successor management could cause it to fail. Do you have a business that you nurtured and grew for many years? Perhaps you have one or more children in the business that has worked hard to contribute to the bottom-line growth. Perhaps you have one or more children who are not involved in the business on a day-to-day basis. The business is probably one of your largest assets.
Who do you want to control the business after you are gone, the children who worked with you to help it grow, or the non-business-children who were left a part of the business as an inheritance? Will your children's bequest help them grow together and prosper as siblings, or will it cause them to grow apart as conflicts arise over the management and income of the business?
At Appel Insurance Advisors, we have seen families who have tried to resolve this type of issue by passing the business to the children working in it, and passing the real estate from which the business operates to the non-business-working children. This almost always leads to strife and often legal action. We have helped business owners’ design, structure and fund business transition plans that allow them to treat all their children fairly. And as parents, we know that “fairly” does not always mean “equally”. We can do this without tying the hands of the children that should be the voice behind the businesses growth.