Employee Retirement Income to Support Lifestyle

In many situations involving the transition of business ownership to a family member, the owner is looking for continued income that will support a retirement lifestyle. It is important that the transitioning owner and the new owner discuss the income expectations of the current family business owner before any final transition agreement is made. This will reduce, but may not eliminate, the resentment from the next-generation owner of the business. Long-term acceptance of paying an income to the former owner is more of a problem when the owner is selling versus gifting the business. (more…)