Family Business Trusts
Family Businesses require a lot of hard work to build, to run, to manage and to succeed. They involve years of huge efforts and sacrifices, with the risk of everything being lost once a family business passes on from one generation to the next. This is precisely the reason why all precautions have to be taken to safeguard such businesses from the risks associated with the succession of such businesses. Family Business Trusts provide such precautions.
Having a succession plan for one’s Family Business is therefore crucial to all Family Businesses, and Trusts can be used as part of this plan. Family Business held through Trusts, assist families in structuring their businesses in a way that ensures business continuity and preservation along the generations, in accordance with the wishes of the founders of the relevant business.
Highlights of what a Trust can achieve when holding a Family Business:
- The ownership of whole businesses can be consolidated in one entity, being the Trustee;
- The possibility of separating the economic interests in a business from the voting and managing powers;
- A Trust avoids conflict and discord as to who holds and owns the business and who exercises decision making powers, especially upon the passing away of the founders;
- An independent professional Trustee helps direct the business in accordance with the wishes of the founder without getting trapped into family matters;
- Achieves a balance between the involvement of family members in the management of the business and the involvement of external consultants and professionals;
- Creates a long term plan for the business which takes into account the different needs of different family members as their circumstance and those of the business itself change.
In cases involving family businesses the Trustees will strive to get to know both your business and your family thereby becoming partners with you in ensuring that your family business succeeds through the generations.
We learn about your needs
We design a solution
We implement the plan
We become your Partners