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Top Strategies to Pass Your Company to Your Heirs

By Wealth Management Solutions 

Have you ever wondered what will happen to your business when you’re ready to step back? Every tough decision, every late night, every victory has led to this moment. 

For some, the thought of handing over your life’s work to someone else can be daunting—understandably so! But it’s a significant step and vital for setting the stage for your business’s future. 

At Wealth Management Solutions, LLC, we specialize in guiding you through the succession process to foster a smooth and successful transition. Whether you’re eyeing retirement or just looking to shift your focus, it’s crucial to understand our top strategies for passing your company to your heirs. 

Understand the Value of Your Business

Understanding your business’s true value is crucial for effective succession planning. A business valuation helps determine its worth and guides decisions about its future. 

An accurate valuation involves looking beyond your financial statements to include the intangible assets—your company’s reputation, the relationships you’ve built with your clients, and how your operations run. At Wealth Management Solutions, LLC, we work closely with you to pinpoint and capitalize on your business’s key strengths and opportunities. This way, we can tailor a smooth succession plan that truly aligns with your personal goals.

Develop a Clear Succession Plan

A well-thought-out succession plan is essential for a smooth transition. It should include selecting suitable successors—whether family members or key employees—and clearly defining the steps needed for them to take over the business. This proactive and structured approach effectively trains and prepares new leaders.

By starting early, we can develop strategies that fit your business and future income needs so that nearly everything is in place when it’s time to transition.

Avoid Legal Issues

When preparing to pass on your business, the last thing you need is a legal complication. Transitioning your business involves several primary legal considerations, and getting them right is essential to facilitating a smooth handover. Here’s what we advise you to think about:

Estate Planning

Proper estate planning involves having a will, setting up trusts, designating beneficiaries, and confirming your business assets will be transferred according to your wishes. Our thorough planning process aims to manage estate taxes and avoid legal snags down the road.

Legal Compliance

Complying with current laws and regulations during the transition is vital, so we make it a key priority. This includes regularly reviewing contracts, licenses, and any other legal documents that govern your business operations.

Ownership Structures

It’s important to remember that selecting the appropriate ownership structure can facilitate a smooth succession. Whether it’s a family limited partnership, a buy-sell agreement, or another arrangement, our goal is to find the right fit to keep things running smoothly and ease the process.

Consider Tax Strategies

If taxes aren’t properly managed, they can erode profits when you sell your business. We focus on seamlessly integrating tax planning into your succession plan, taking into account important issues like capital gains, income, and estate taxes.

It’s also wise to think about how your business assets are valued. Remember that precise valuation we mentioned? Well, it can make a big difference in your tax bill and how much money you end up with after a sale. Another item we consider in our planning process is whether to make the most of retirement accounts, like 401(k)s and IRAs which can reduce your taxable income and enhance your financial stability.

Communicate With All Stakeholders

Change can be unsettling, especially if it comes as a surprise. That’s why talking to everyone involved (such as family members, employees, and clients) is critical. Being open and honest helps everyone know what to expect, and this trust is key to successful succession planning.

Review and Adapt

You’ve likely heard that the only constant in life is change—and that’s definitely true for succession planning. That’s why simply sticking to the plan isn’t enough. We need to revisit and course-correct as things evolve—your life, the business environment, everything. We make it a priority to regularly review and adjust your plan so it remains in line with your current needs and goals.

Thinking About the Next Step for Your Business?

At Wealth Management Solutions, LLC, we’re here to guide you through the entire succession planning process. As we like to say, our planning; your future. 

If you want to see how well prepared your business is for a transition, schedule a complimentary consultation by contacting us at (949) 475-9700 or info@wms-llc.com. Together, we can position your business—and your legacy—for success, now and for future generations.

About Wealth Management Solutions

The story of origin: Wealth Management Solutions was created in 2003, following the personal family tragedy felt by the founding partner of the firm. Richard Riva lost his father unexpectedly and before any legacy planning was done that could have extended his family’s legacy beyond the fourth generation. Our partners and team members all share similar experiences due to a lack of planning for their families and are committed to preparing the next generation with the advice, planning, strategy, and governance to manage company assets, stocks, or inherited wealth. This is why we say: Our Planning; Your Future. 

All investing involves risk, including loss of principal. No strategy assures success or protects against loss.

The opinions voiced in this material are for general information only and are not intended to provide specific investment advice or recommendations for any individual. 


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