Among the members of the primary generation of a family business, the relationships may be strong and easily able to work together. It is typically upon the transition to the second generation that many issues can arise within the family business. As a result, it is vital for family business owners to create an effective estate plan in Orange County. What are some the potential issues that can arise? The following are seven examples:
- While the owners of the family business at the first generation may get along well and work efficiently together, younger generations may not share those same relationships.
- Marriages and divorces could have the unforeseen result of bringing in new owners of the business that were not originally intended.
- When a family business owner passes away, there may be significant delays in the ability to control that owner’s interest in the business as the estate passes through the administration process.
- Different business owners may have differing financial goals for the business.
- After the original owners pass, some of the new owners may want to sell the business while others may want to continue it.
- It may be difficult to value the interest of a business owner after she passes.
- After the passing of a family business owner, various estate tax issues may be triggered.
Each of the above is an example of what can go wrong when family business owners fail to create an Orange County estate plan. Fortunately, the knowledgeable Orange County trust attorneys at the Law Office of James F. Roberts & Associates, APC, can help you to avoid these problems with your family business. Call our office today at (714) 459-5481 for a consultation.