What Role Should Your Children Play in Your Business Succession Plan?

A well-structured business succession plan covers a lot of ground: taxes, trust strategies, market valuations and much more. But some of the trickiest issues involve something much closer to home: your kids. What makes sense and what’s fair?

A family with several grown children sit on a rock wall, taking in a view of a valley.
(Image credit: Getty Images)

As a financial adviser, I meet with many successful business founders. Most of them have a vague idea of what should happen if they were no longer able to lead their operations. They have life and disability insurance and sometimes long-term care insurance, but they lack confidence in the infrastructure for maintaining the business if they were not at the helm. However, they have some appreciation for the expense and hard work that will be required to plan for their eventual retirement or death, because I am not the first financial adviser seeking their business.

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Timothy Barrett, Trust Counsel
Senior Vice President, Argent Trust Company

Timothy Barrett is a Senior Vice President and Trust Counsel with Argent Trust Company. Timothy is a graduate of the Louis D. Brandeis School of Law, past Officer of the Metro Louisville Estate Planning Council and the Estate Planning Council of Southern Indiana, Member of the Louisville, Kentucky, and Indiana Bar Associations, and the University of Kentucky Estate Planning Institute Committee.