It is never too early for family business owners to start thinking about their succession plans. Taxes are certainly an important part of the equation, but are often not the driving force. A comprehensive and integrated plan will also include - and often lead with - non-tax considerations, including family dynamics, securing retirement income for the business owner, and addressing business continuity and key employees. Starting early gives business owners time to meet current business needs and plan for the future.
The generational transition of a family-owned business is rarely a clean and simple process, and not all businesses succeed. Only about one in three family businesses are expected to survive the founder’s generation, and even fewer, an estimated 12%, will make it through to the third generation (PwC 2019 US Family Business Survey).