Nextgen.Law | Family Office

In many family businesses, there is tension between the founding generation leading the business and the future generation because there is no clear path as to when control will be passed down. This can often lead to family relationships breaking down and the family business suffering as a result. To avoid this, there should be a succession plan which details the way in which the family business is intended to transition from one generation to the next, including the movement of responsibilities from one person to the next, and any training required for someone to be empowered to take over the business. Family businesses can often involve intricate succession planning so that all family members know what is going on and whether a member of the family is involved or not, they are aware of the plans for the future of the family business. This minimises the risk of family disputes about the business and helps to bring families closer together.