The stepmother was now the owner of a business she didn't want. It wasn't long before the business was sold to outsiders. No planning, no communication, the end of a family business. What this business owner and many other family entrepreneurs fail to recognize is that growing a business that will continue from one generation to the next is similar to raising a family. Nurturing and a willingness to let heirs step out on their own are essential to success.
Family businesses survive and prosper when they follow the same rules as a nonfamily business.
Select the successors to the business based on qualifications and desire. Heirs who want no part of the business can be rewarded in kind with the help of insurance as part of an estate trust. Early and often. Personal circumstances cannot be predicted in advance. The best plan addresses today's needs, not yesterday's.