What is the connection between estate planning and business succession planning?
Business succession planning is essentially estate planning for the business and the individual owners of the business. Because the succession plan may address (i) the succession of management to the next generation and (ii) the distribution of ownership interest, or the distribution of proceeds from the sale of ownership interest, to the next generation, it is critical that the estate planning arrangements of the business owner are consistent with the objectives of the succession plan, and vice versa.
