I am running the business my father founded and wanted to ask about protecting the family should his health deteriorates. Dad is 74 and reluctant to formally hand over control but we want to put things in place to ensure everyone is happy. What is the best way we can achieve this?
Get a good accountant who can help you with succession planning, and do it sooner than later!!!
everyone involved in this business will be better off with a plan in place that ensure you all know what is going to happen and what time-bombs you have ticking away that will need to be dealt with.
The advice will depend on what you and your father have in place now, what you WANT to take place and what you need to do to ensure the maximum benefit for all involved.
An excellent question to ask - Kudos to you in keeping the family business alive. Perhaps an option to consdier is a enduring power of attorney that kicks in, in the event something unforeseen takes place, the business can continue on.
Often we see only the black or white options, with this you have the ability to continue with the status quo with a legally binding safety net that will support you.
Of course, this one is best assessed by your solicitor or legal representative to ensure it is compliant and enforceable.
I have used this in MANY situations similar to these.
Hope that goes some way to assist.
nicholas financial solutions
0481 383 490
As Brendan said you need to get yourself in front of an experienced accountant and estate planning lawyer ASAP.
You really need to get this sorted ASAP all too often it doesn’t and families and businesss end up in ruins as a result.
You need to sit down with Dad and the business accountant to discuss the options. Depending on how the business is set up, there may be smooth transfer options that covers Dad's wishes as well as looking after your long term plans.
Succession planning is often a difficult subject to run with the founder, but really important as they age.
You may also need to see a law firm that specialises in business structures and succession planning, where they can make sure all the legalities are covered for the worse case scenario.