Things to Consider:

• Create a timeline that identifies the circumstances when a succession will take place with specificity.
• Carefully construct any family succession plan that takes into account complicated family dynamics and emotions. Consider engaging a business consultant with a background in family succession plans to help navigate difficult issues.
• Formalized standard operating procedures, audited financial statements, and executed employment and vendor agreements can usually enhance the value of a business.
• Trusts used to transfer business interests to family members must be carefully drafted and properly administered in order not to disrupt the operations of the business.
• Only certain kinds of trusts are eligible S corporation shareholders.