Financial advisor Jerry Guttman leverages nearly three decades of financial planning experience to inform his role as a financial advisor at Total Living Plan in Arizona. Jerry Guttman also regularly conducts financial seminars on behalf of the Society of Financial Awareness, and has authored a book and a paper on the importance of estate planning.
Estate planning is especially important for small business owners and entrepreneurs. If left ignored, a lack of estate planning can cause numerous hardships for the business in addition to family members. Statistics from the United States Small Business Administration show that over half of family-owned businesses fail following a transition to another generation.
Due to this reality, succession planning is an important element of estate planning for small business owners. Succession planning broadly refers to the planned transfer of business management and ownership to another individual. However, it also includes more intricate elements that range from training for successors, the delegation of responsibilities, coordination between co-owners if necessary, and planning to minimize taxes and avoid probate. Together and with the help of a financial professional, these elements help to ensure a business thrives when passed to another generation.
