Owning a business in Michigan puts a unique twist on estate planning. On top of coordinating the delegation of your personal assets, you will want to ensure that your business is in good hands when the time comes for you to step down.
Working a succession strategy into your estate plan can give you peace of mind for the future. Additionally, it can provide other company leaders with invaluable insight regarding your wishes for the organization’s future.
Aspects of succession
Lots of factors will influence your decisions as you create a succession plan. These may include the size and scope of your business, the company’s financial structure and the availability of talent and resources within your organization. According to Fidelity, some aspects you will want to consider as you begin succession planning include the following:
- Methods to retain and motivate your employees
- Resources to educate and train key players
- Delegation of leadership roles and responsibilities
- Opinions and objectives of key shareholders
- Personal requirements and desires
Periodic assessment
Just like with your personal estate plan, you will want to keep your succession plan up-to-date. Make sure that those who need to stay informed of your plan know where to access the information. It would also benefit you to discuss any changes with those same people so everyone has a clear understanding of their role.
Proactive planning of your estate can reduce your stress and protect your assets from fraud. Streamlining your personal plan with your business succession plan can provide clarity to your surviving family members and business associates after you die.