Five reasons to sort out your succession planning

Do you have succession planning in place for your family business? Ben Allen is Attivo’s Head of Corporate; he provides holistic financial advice and specialises in helping corporate clients. He has a number of reasons why succession planning is vital to any family business.

If you fail to plan, you plan to fail

So often, clients breeze over the subject of succession planning, seeing it as ‘tomorrow’s problem’. It’s never too early to plan ahead.

Family friendly?

There’s often the idea that a family-run business needs little planning, but that’s not true. Family interests create their own dynamics and introduce emotional aspects that wouldn’t be applicable in a purely commercial arrangement. Because of this, business owners need to plan how they want the business to be passed on – and that all parties agree.

Watch out for family feuds

Children legally disputing their inheritance is a common occurrence in UK courtrooms. Add in a successful business without succession planning, and the family could spend months, if not years, settling in court.

Keep it simple

The essential factors to consider are: What is the ideal position on succession? Do any parties disagree or have a conflict with the proposal? Review every year, especially if something changes.

Be informed

So you now know what it looks like, who is involved and all in agreement? Speak with an advisor! The UK has an array of various tax incentives, allowances, and exemptions available to business owners to help stimulate entrepreneurship. This is your opportunity to save a significant level of tax through careful planning.

Ben Allen provides holistic financial advice and specialises in helping corporate clients with all aspects, from workplace pensions and auto-enrolment to financial planning and business protection. For advice, contact your Attivo advisor or find us at Attivo.co.uk, we are here to help.