A Georgia entrepreneur who runs a business or has other complex investments might want to eventually pass on these assets to their children. However, a family member may not be the best choice to take over a company or manage other complicated assets. Another option is to have employees and other professionals take over those assets while still ensuring that family members receive the financial rewards.
It is possible that a child will not appreciate a legacy or may lack the expertise to properly run a business. This was the case for one man who had built up a company his father started into a business that he eventually sold for $50 million. The man did not want to leave it to his family because they already had some difficult dynamics, and he was afraid the added stress of managing the company would fracture them. Unfortunately, selling the business meant his legacy would not be carried on. He could have created a succession plan that would allow the business to pass to the control of others while still benefiting his family.
Another option is to separate who manages assets from the person who deals with revenue. The latter individual could make distributions to family members.
Even if a person does not have a complex estate, taking family dynamics into account is an important element of estate planning. For example, an estate owner may want to talk to loved ones about the plan so that they understand why certain assets have been left to certain people. This could reduce the probability that the estate plan will be misunderstood or challenged. When choosing an executor for a will, one may want to consider someone who is good at managing family conflict.