Estate Planning and Your Family Business
Unfortunately, only one third of family-owned businesses survive the transition to the second generation. In turn, the chances that your grandchildren will take over your business are about 1 in 10, according to chartered accountants BDO Dunwoody. This statistic is true of both urban-based and rural organizations.
One major cause of unsuccessful business transitions is the absence of formal estate planning. Though this is sometimes due to succession issues, many business owners simply do not want to think about the day when they will no longer be running the business. In addition, the business succession process must invariably deal with the business owner's death.
Obtain Peace of Mind with Financial and Estate Planning
Have you addressed any of the common fears associated with retirement from a family business, such as anxiety over loss of relationships with people at work, or fear of having nothing to do? How much money do you need to secure the rest of your life?
Another important question to consider is whether you will require income from the family business. It is important to take into account how factors such as inflation, drawing down assets, getting sick, or even living too long can erode your retirement funds and affect the financial future of your family-owned enterprise.
Access Estate Planning Retirement Advice and Resources at ABFI
The first step in developing or renewing your estate plan is to assess your current situation. The Alberta Business Family Institute offers estate planning retirement advice, as well as helpful resources that can help you to plan a peaceful and secure retirement.
Attend our seminars and programs, access professional advice and review articles on financial management and estate planning for families with business enterprises. Learn more about our valuable services or contact us for more information.