At some point in your life, you’ve probably read an Archie comic or at least seen one at a grocery store checkout aisle. If you run a family business, you can learn more from Archie comics than simple life lessons about growing up in a small town. Unfortunately, what you will learn is not in any comic issue, but in the lack of succession planning in the business and why you should make succession planning part of your estate plan.
Consider the case of the company with two CEOs at odds with each other, so much so that they have been dueling it out in court. The reason that the company has two CEOs who don’t get along is because the previous owners did not plan for succession. One current CEO, got his share in the company by purchasing it from a former owner’s estate. The other current CEO is the widow of a former owner. The two initially agreed to work together and cooperate, but finding a way to do that has involved having a judge decide some disputes.
Instead of relying on other people to decide how your business will go on after you pass away, speak to an attorney about setting up a succession plan that has a clear leader to take your place.
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