Publications
Publications
- March 2013
- Trust & Estates
The Unintended Consequences of Ownership Transfer Planning
By: Josh Baron and Marion McCollom Hampton
Abstract
The article discusses the challenges of passing down family businesses across generations, highlighting complexities in executive succession and estate planning. It emphasizes how emotional factors, complicated family dynamics, and unintended consequences influence successful cross-generational transfers. The authors present real-world scenarios illustrating how transfer plans can hinder effective business management by successors. They address issues like equal ownership leading to decision-making difficulties, unawareness of ownership outcomes, and unintended consequences of overprotective estate planning. The article emphasizes the importance of advisors considering the practicalities of ownership transition, fostering communication, and aligning successor's abilities and intentions. It also advocates collaboration between legal and family business advisors to create effective ownership structures that consider emotional and psychological factors.
Keywords
Estate Planning; Family Business; Family and Family Relationships; Management Succession; Family Ownership; Manufacturing Industry; Financial Services Industry; Education Industry; Fashion Industry
Citation
Baron, Josh, and Marion McCollom Hampton. "The Unintended Consequences of Ownership Transfer Planning." Trust & Estates 152, no. 3 (March 2013): 52–56.