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Preparing for the loss of an owner

Estate planning and legacy assessments for family business

Like the artist whose work outlives them, maybe you’d like your family business to last generations. Securing your legacy begins by asking, "does our family have an estate plan?" In this installment of our eight-part series, "Pivotal moments for family enterprises," we'll explore the value of both estate plans and legacy assessments and explain how to navigate the process to help shape the future of your creation.

Pivotal moments for family enterprises under the spotlight

At some point in the evolution of every family business, its founder and/or present leader is going to pass on. Even when it happens unexpectedly, the consequences don’t need to come as a complete surprise. Proper planning through a legacy assessment can help position and prepare the family and/or the associated business for continuity and provide a clear understanding of the founder’s or leader’s wishes.

Many family business owners may think they’re covered by an estate plan, but an “estate plan” is generally a legal document covering the disposition of the estate assets. While important, it’s just a starting point for navigating the complicated issues associated with the transfer of assets and the payment of transfer taxes.

A legacy assessment goes far beyond that—helping the family and the business understand the ripple effects from a family leader’s passing, including potential liquidity gaps for covering estate taxes, who will ultimately control the family business, unintended repercussions of charitable gifts, potential conflicts among beneficiaries, and other matters related to ensuring the family’s business stability and financial strength.

From preventing the preventable to knowing when it’s time to course correct and more—there are key questions to ask if you’re considering the need for a legacy assessment now or in the near future.

Download full Pivotal Moments article

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