Business Succession Planning
Most business owners wish that their businesses can last from generations to generations. Transferring the business to the next generation can only work if that generation has the desire to carry out the business. Besides, it requires the appropriate legal tools, a well-designed succession plan and the implementation of a set of family rules. It is never an easy process and requires regular review to ensure that it is fine tuned to the latest situation of the company.
Employee Retention Benefit
If one is worried that their spouse or children is unable and inexperience to manage the inheritance, formation of Trust can be the solution! Trustees act and hold your assets on your behalf, and distribute the wealth gradually over the stipulated period. This can avoid the wealth from being wipped off through poor financial management or spendthrift beneficiaries.
Keyman or key person compensation scheme, compensates a business loss which arises due to death, diability or illnesses of its important employees. Very often, when the key person is unable to oversee or monitor its portfolio for a stipulated period, projects will be delayed. Compensation may have to be paid due to the delay, which will eventually affect the companies’s profitability. Some companies set up this scheme for the benefit of its key executives. Part of the compensation is given to its key executives as token of appreciation in the even they looses the ability to work due to health reasons or disability. Meet one of our advisor today if you need further details!