Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Procrastinating Succession Plan Can Leave You Open to Costly Mistakes
Author: Scarinci Hollenbeck, LLC
Date: June 10, 2013
Key Contacts
Back
Running a business requires a great deal of time and commitment, and owners who are operating a busy enterprise may sometimes make the mistake of putting their succession plan on the back burner. However, an accident or unexpected medical disaster can change a business owner’s circumstances quickly, making it imperative that they plan for the worst and establish a succession plan to protect their venture.
A recent Wealth Management article highlighted the common mistakes many entrepreneurs and business people make when holding off on establishing a plan, one of which is assuming that the successor will be ready on the owner’s timeline. It’s not uncommon for new successors to lack the proper training, a relationship with employees, financial know-how, and overall industry experience when they take on the job, but this scenario put the company in jeopardy.
This is a situation in which it pays to develop a succession plan early on and ease new owners into the transition so that they will be fully equipped to take on the responsibilities of the company with confidence.
The source also noted that some owners consider succession to be an all or nothing transaction and believe they must give up all legal rights to the company. However, more of today’s company heads are relying on trusts as a strategy to pass wealth onto new generations, maintain a measure of control in how the business is operated, and benefit from many estate tax law advantages.
As there is no one-size-fits-all approach to choosing the right trust for a succession business plan, contacting an attorney to set up the transaction may help owners make a more informed decision about their options.
As the current economic and regulatory climate continues to shift and business owners seek out new ways to protect their company assets, establishing a solid succession plan should be a central part of their overall wealth management strategy.
- Practices: Tax and Trusts & Estates, Corporate Transactions & Business, Estate & Trust Litigation, Real Property Tax Strategies, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Author: Donald M. Pepe
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
Types of Business Law Services Companies Actually Use
Business law services are legal services that help companies form, operate, transact, protect assets, manage risk, and resolve disputes. The phrase can sound broad because it is broad. A company may need help with entity formation one month, contract review the next, a commercial lease after that, and a business dispute later in the year. […]
Author: Scarinci Hollenbeck, LLC
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.