4. Operating businesses

If you have a business, you know how time-consuming it can be to make a succession plan. But there are a lot of business owners who are not aware of that, and they just assume that the business can be simply passed on to their heirs, like a car or a brokerage account.

Because of this, a business is also one of the worst assets to inherit. First of all, you should ask your kids if they want to take over the business. This is a really important question because if they don’t want to do it, you will most probably have to sell it.

You should establish a “buy-sell or shareholder agreement” if you have business partners to cover what happens in the event of a partner’s passing.

But even if your family agrees to take over the business, this does not mean that the conversation is over. There is still a chance that conflict will arise. So, the first thing you can do is always prepare ahead.