Including your business in your estate plan may seem an overwhelming task. However, with the right strategies, you can successfully align both your estate plan and your succession plan.
With a coordinated strategy, you can feel confident about the security of your estate and the sustainability of your company’s success.
A large part of your company’s succession plan should focus on leadership. Recruiting, retaining and developing great leaders takes time and persistence. According to the National Institutes of Health, Office of Human Resources, one of the big risks of an inadequate succession plan is the potential loss of time and resources that often accompany the process of hiring new leadership and bringing them up to speed. Additionally, this challenge could disrupt your company’s workflow, impact morale and shift the culture.
Within your succession plan, you can identify strategies for training and promoting leaders. You can also address how to handle sensitive affairs in the state of an emergency. A well-written plan will provide organizational leadership with the tools and guidance they need to continue operations even during unprecedented times.
A succession plan is a small piece of the puzzle to your estate plan. Your personal strategy for the future should include information regarding your expectations for the management of business affairs. This may also include details about ownership, stocks and profits. Including these details in your estate plan will protect personal and business assets and prevent them from getting into the wrong hands.
Coordinating an estate plan and a succession plan takes time. With life changes, you will need to regularly assess and periodically update your plans. Working with an attorney can help you make informed decisions about the best ways to protect your personal and professional assets.