Advivo explains how you can effectively avoid business disputes when conducting your estate planning.
Estate planning is essential for business owners to ensure the smooth transition of their assets after they pass away or become unable to run their business. This process, however, can result in disputes between the business owner and other stakeholders, especially if these are family members. In fact, 72% of family businesses find effective estate planning challenging. This can negatively affect the long-term stability and continuity of the business. So, as experts in estate planning in Brisbane, we outline a number of strategies for avoiding potential disputes within your business, while you are preparing your estate plan.
Create a Clear Succession Plan
One of the most effective ways to avoid disputes is to clearly outline your succession plan to the stakeholders of your business. This needs to include important details such as who will fill leadership roles, how the ownership will be transferred, and your expected timeline for your succession. This way, your stakeholders will be better prepared in the event of you being suddenly unable to continue to run your business.
Regularly Review and Update Your Plan
Businesses change over time, so to avoid disputes, you should ensure that you are regularly reviewing and updating your estate plan. In this process, you should consider changes in family dynamics, legal regulations and other changes that could potentially impact your business’s succession. This way, you can avoid any uncertainty or confusion that could be created by outdated arrangements.
Take an Active Role in Preparing Your Successors
Another effective strategy for avoiding conflict within your business when you are developing your estate plan is to ensure that your designated successors are properly prepared for their future roles. By providing your chosen successors with the necessary knowledge, skills and experience, you can be confident that your business’s finances will be managed correctly after you are no longer in the picture.
Maintain Open Communication with Shareholders
One of the most important ways to avoid conflicts during your estate planning in Brisbane is to maintain open, honest communication with all shareholders in your business. By discussing succession and estate plans openly, you can effectively manage your shareholder’s expectations. Furthermore, concerns and disagreements can be identified and resolved early on, removing the risk of this occurring after you are no longer in control of your business.
