The passing of ownership from parent to child is an age-old practice. What started as necessity has, through the centuries, become tradition and is still a point of pride among many business leaders and entrepreneurs. Financial services professionals are no exception.

Simply handing control and ownership of a financial services business to a son and/or daughter–or to a cousin, nephew, or brother-in-law, might seem like a quick and easy solution for an advisor planning for eventual retirement and looking to the enduring future of his or her business. In reality, however, the issue of family succession comes with the same–if not more–challenges than the hand-off to a non-related business associate, especially when it comes to the tax consequences of gifting ownership rather than selling.

Keeping it in the family

Issues of taxation, proper documentation, compensation, and effective communication are important to any transfer of ownership – whether an owner plans to keep things in the family or not. The FP Transitions Succession Management Program is designed to help construct and implement a customized plan for the future leadership and growth of a business that extends beyond any one owner’s career. Our team has the experience and expertise to help businesses anticipate and avoid any roadblocks to their unique journey­.

Learn more about the full capabilities and deliverables of our Succession Management Program here.