Here are some reasons you probably don't need to worry about succession planning...
Own your own business? In a partnership? Have a family company? Here’s some reasons why you probably don’t need to worry about succession planning….
• You are too busy to die or lose capacity and therefore won’t do either;
• You trust your family and those you work with;
• Your loved ones are fast learners and would enjoy the challenge of running a business they know nothing about;
• Your business partners get on well with your family and would adore spending time educating them about the business (and being reliant upon their business skills and judgment);
• You don’t need a relationship agreement with your business partner, they will always do the right thing by your family and will happily share the profits many years after your death (or during long bouts of illness) even if they are not legally required to;
• You or your family don’t mind if ownership of your business and all profits end up with your business partner and their family. They deserve it more because they work harder than you;
• If you have a family business, everyone knows their role and entitlements and there will be no disputes;
• It is best if your executor or attorney (whoever they may be) decide who should take over and run your business;
• You have every conceivable insurance policy with an understanding insurer (who will pay up without question no matter the circumstances) and have carefully completed beneficiary nomination forms (or don’t care who gets the money);
• Surely no one expects a sick or dead person to pay their business’ debts or honour personal guarantees?
• Your customers will pay you even if you are unable to do the work;
• Your business and taxation affairs are unquestionably in order and there will be no headache left for others;
• You are not phased if lawyers and accountants need to get involved, we all need to do our bit to stimulate the economy, it’s good for their business!