Many parents in Minnesota expect that they will eventually pass their estates on to their children as a matter of course. In general, families want wealth to be passed from parents to children, including businesses, investments and real estate. However, some people may wish to consider alternative ways of handling their assets, especially when their children are already well-off and successful on their own.
While parents may want their children to benefit from the income produced by their assets, they might also have concerns that their kids are not the best people to manage the family business or direct an investment fund. When people have substantial businesses, it can be important to set up an internal succession plan that includes paid managers and officers. The profits and income of the company can still be directed to the owner's children, but a different business management structure may be the best way to keep the enterprise profitable and growing. Management and control of an asset do not need to be combined with benefits from those assets.
Some business owners choose to sell off their companies toward the end of their lives as they do not want to pass management and control to their children. However, they still want to give a large bequest when they pass away. When management and control are left in the hands of skilled, paid employees, the children can benefit from the ongoing income provided by a successful company.
When people are considering their plans for the future, there are many creative ideas that they can pursue to preserve their assets and support their family members. An estate planning lawyer can work with clients to set up wills, trusts and other key documents that put a plan in place for how their assets will be passed on.