Do you have a contingency plan for your business succession ?
A study showed only 30% of family owned businesses survived into second generation, 12% survived into the third and only about 3% of them survived into third generation and beyond. How much have you done for your own company business succession ?
For business owners, challenges do come in day in and day out. Decision have to be made fast and accurate to make sure they are ahead of the race. As a human nature, we always think we will lived forever and ignore the reality that death is certain. This is one of the reason people procrastinate.
The second reason is some of the business owner still unable to decide whom shall take charge among all the children ? Will the selection of a new successor create interpersonal acrimony? Or should I sell my business once I pass on due to my children not interested in my business ?
Historically, trust is an effective way in business succession planning and wealth preservation. Trusts play a vital role in succession planning for reasons of tax efficiency, creditor protection, and centralized management of family assets.
A Trust is a process where the owner of the trust (Settlor) pass the ownership to another party (Trustee) for the benefits of a third party (Beneficiary). A Trust help businesses to continue without any difficulty after the passing of the owner. It is a great way to keep the family together as one. Besides, trust help to provide lifetime care for their spouse, young children and aged parents. Assets held in trust can prevent mismanagement, reduce the risk of getting scam, act as business preservation and protection to family in the event of insolvency.
For more in depth discussion, do contact us now.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs.
Published By:
YF Foong, Eunive (冯玉芬）
“As a dedicated financial advisor, my passion lies in collaborating with individuals, particularly business owners, to safeguard their hard-earned wealth. My primary goal is to ensure that the wealth you diligently accumulate throughout your lifetime is securely protected, smoothly transferred, and effectively preserved for your chosen heirs in a fast, seamless, and reliable manner.
Wealth distribution planning is deeply personal, with each individual harboring unique desires and concerns. I pride myself on being a attentive listener, eager to understand your innermost worries and aspirations. Together, we navigate through your thoughts and preferences to chart a tailored roadmap that aligns with your ultimate wishes.
A well-defined wealth distribution roadmap not only provides clarity but also shields you from unexpected distractions along life’s journey. With this roadmap in hand, you can confidently pursue further wealth accumulation, knowing that you’ve established a robust financial safety net.
I invite you to take the next step forward with me on this journey. Let’s connect soon to discuss your financial aspirations and craft a plan that secures your legacy.”
