Throughout Southern California
View Our Practice Areas

Keeping the Family Business in Business

A good estate plan may prevent the family business from failing after the first generation passes away.
Family business owners face a challenge when it comes to the continued operation of the business when they attempt to pass the ownership and operation of the business to the next generation because 70% of businesses fail in the second generation.
There are a great number of cases where the family does want to keep running the business, but is unable to do so.
When that happens it is often the result of inadequate planning as Bloomberg points out in "Keeping It in the Family."
A key problem is that succession planning for a family owned business is more difficult than it is for other businesses as there are more stakeholders involved. If the business represents a large portion of an estate, the founder must also plan for how relatives not involved in the business will receive an equitable inheritance.
One of the common mistakes people make is to give ownership control to family members who are not going to be involved in the actual running of the business. That creates tension and fighting with family members who are running the business.
Just because succession planning is more difficult for family owned businesses does not mean that it is impossible. With proper succession and estate planning the business can thrive long after the founder has passed away. For that to happen it is important to not delay the planning, but instead to start as soon as possible.
An estate planning attorney can give you guidance to increases your chances of success when passing ownership from one generation to the next. 

No Comments

Leave a comment
Comment Information
Email Us For A Response

Find Out The Difference That Experience And Expertise Makes

Get the peace of mind that you deserve. First, attend a seminar. This will entitle you to a free initial consultation and a discounted estate planning fee. To learn more about our services or sign up for a seminar, contact us online or call us at 866-402-1805. We have offices in Torrance, Orange, Newport Beach, Pasadena and Woodland Hills.

Questions? Contact Us.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Call Now For A Free Consultation: 866-402-1805
  • ${site.data.firmName}${SEMFirmNameAlt}
  • Main Office: Torrance

    Torrance Office
    990 West 190th Street
    Suite 500
    Torrance, CA 90502

    Toll Free: 866-402-1805
    Map & Directions

    Orange Office
    333 City Boulevard West
    17th Floor
    Orange, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Newport Beach Office
    5000 Birch Street
    Suite 8000
    Newport Beach, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Pasadena Office
    790 East Colorado Boulevard
    9th Floor
    Pasadena, CA 91101

    Toll Free: 866-402-1805
    Map & Directions

    Woodland Hills Office
    5850 Canoga Avenue
    4th Floor
    Woodland Hills, CA 91367

    Toll Free: 866-402-1805
    Map & Directions

    Office map
Check out The Law Firm of Kavesh, Minor & Otis on Yelp
Check out Kavesh Minor & Otis on Yelp
Check out The Law Firm of Kavesh, Minor & Otis - Orange on Yelp
Check out The Law Firm of Kavesh Minor & Otis - Pasadena on Yelp