A successful business person in Colorado will typically want to pass on wealth to family members. Concerns about the abilities of heirs to run the business, however, could cause someone to look for alternatives to an outright handover of a business upon death. Careful succession planning might assign the management of a business to professionals or key employees. This approach may leave the business in capable hands so that it can continue generating revenue. The management of profits and distribution to heirs could also be placed in the hands of a competent individual or organization.
During succession planning, a person needs to identify and hire people with the qualifications to manage a business and oversee distributions to beneficiaries. The same person does not necessarily need to be in charge of both control and distribution. They are distinct tasks that might be best served by different professional parties.
A person thinking about selling a business because heirs appear unable to run the company or uninterested could investigate approaches to succession planning. A business may potentially continue for generations under the right management, and heirs of the founder could still benefit.
A person with substantial assets may wish to work with an estate planning attorney to develop a plan for passing on a legacy. An attorney may provide information about numerous issues like the valuation of business assets and possible taxation. An attorney might also analyze issues impacting heirs, like debts or potential divorce, and suggest strategies for insulating an inheritance from outside claims. An attorney may be able to participate in discussions with key employees who the person wants to entrust with management of a company upon departure. After coming up with a plan, an attorney may write the necessary documents like agreements with key employees and trusts.