Some people in Colorado who are creating estate plans might want to consider whether leaving a business and complicated assets in the control of family members is the right choice. People may want to provide for their spouses and children and assume they have no choice but to mandate that their family members manage those assets, but this is not the case. Other individuals can be chosen to run a business and manage assets while loved ones still benefit financially.
In addition to separating family members from controlling his or her legacy, a person may also want to consider whether different people should be chosen to manage the assets and act as a liaison to the family. The person who is the best choice for taking over the business may not be the right choice for handling distributions to family members.
These are all decisions that can be addressed while making an estate plan. Separating the family from asset management may allow a legacy to flourish. One man made a different decision when it came to the company his father started that he had built up over the years. He was concerned about leaving the business to family members who already had fraught relationships, so he sold it for more than $50 million. While there was a monetary gain, it meant his legacy could not continue.
People who own a business and complex investments may want to talk to an attorney about how to best create an estate plan that allows loved ones to benefit financially without turning all control over to them. Trusts may be one element of such an estate plan. With a trust, a person can specify when loved ones receive distributions but have the trust be managed by a professional. Distributions can be triggered by specific milestones, such as reaching a certain age.