Yes, a pet trust is really a thing. For many, pets are as much a part of the family as you or I. They may not be able to say so, but they deserve a plan, too. Pet trusts are legally binding arrangements that ensure your pet(s) are cared for, according to your wishes, if you are unable to do so due to illness, disability, or passing away. Similar to a trust with human beneficiaries, it allows you to set funds aside specifically for your pet’s needs, appoint one or more trustees to manage the trust’s assets, designate one or more caregivers for your pets, and give detailed instructions for their care. If necessary or desired, you can also compensate the caregiver for your pet’s care. If there are any funds leftover after your pet’s death, you decide who will receive those funds, whether it be your pet’s caregiver, divided among your family or other beneficiaries, or to a charity of your choosing. Pet trusts can provide people with a peace of mind and a sense of certainty that their pet is accounted for and a plan is in place to meet their needs. A pet trust ensures that your beloved companions would continue to receive the love and care that they are used to, no matter what.

The Harvard Business Review article “Avoid the Traps That Can Destroy Family Business” mentions the statistic that seventy percent (70%) of family-owned businesses do not make it to the second generation. Furthermore, if you don’t want your business to fall into that statistic then proper family business succession planning will be vital to preserving the values, vision and foundation you’ve established for many generations to come. Below we have outlined what we think are key considerations to creating a successful family business succession plan and transition:

🔑 Key Steps for Successful Family Business Succession Planning:

1. The Business Plan:
– Evaluate and assess the business’s current value and its potential for long-term growth
– Choose your successors who will help the business flourish according to your wishes
– Develop a transition strategy with the help of an attorney to outline how how the responsibilities will be transferred along with a timeline
2. The Estate Plan:
– Determine the business and personal asset distribution you want to be divided among your heirs
– With the help of an attorney, ensure the proper legal documents (i.e., living wills, trusts, operating agreements, etc.) are created with clear details to ensure a smooth business ownership transition which will mitigate risk and any potential disputes
– Ensure the best fitting tax strategies are implemented that account for any estate taxes and reduce future financial issues for heirs
3. The Exit Plan:
– Define clear exit goals that consider the transfer of ownership, sale of the business, if you hypothetically want to close it down, and what you want to achieve with all of this in mind
– Prepare the business by improving its value, addressing any issues and optimizing the operations if you plan to sell it
– Take into account the financial and personal impact this will have and adjust your plan accordingly

All in all, family business succession planning helps guarantee that your hard work stays in trusted hands for generations to come. By incorporating your family business success plan into your estate plan, it will address the complexities of ownership transition, division of personal property, minimize taxes, and allow the growth of your business to flourish.