Where do I find someone to help with inheritance Issues / family business.

[seanpenn]

Hi,
This is my first post here, maybe someone can help with my situation its just financially complicated and I'm looking to maybe consult with someone for some ideas.... at an affordable price.

Ok my situation is I am one of 3 sons in a strong family business. (all in our 30's) Parents are retired and the oldest brother in the family runs the business.
It is probably valued at net 10 million or so, taking into consideration the property devalutions recently.

My angle from the business is I am in the middle, and I dont really have a role or work there there.Obviously my 2 other brothers do. I cant work with my older brother or him with me as we are close in age and it would be messy working together ie power stuggle...
Having said that, we get on fine and are close, but really I dont really want to work there with him calling all the shots.

Our father and ourselves have been trying to work something out from an inheritance point of view and somehting where we can all get a deal, possibly me getting some capital to setup another business etc......
because essentially he wants to leave the business to the 2 of them.

They (my 2 brothers )have allways had a secure job there, I have only worked there part time. My 2 brothers were able to buy houses and stuff, I was never in the position (to buy) because my job kept changing and I had to watch my funds, I was self emplyoyed, so kept my money for small projects.
There is no bad feeling in the family all are into working something out.

Anyway....
Is there a specialist in this type of stuff , where I can get good solid advice? I would greatly appreciate it.

 

[North Star]

Seanpen: Hi, firstly I wont be recommending anyone in particular as only frequent posters can recommend a person or a firm. However a couple of points you may wish to consider.

1) Its good to hear that this issue is being approached in a sensible manner. Would you consider engaging both a tax adviser and a financial adviser to review the position on behalf all four parties, ( the three brothers and your father) and ask them to come up with an independent report/recommendation?
That way you avoid engaging someone and some of the other parties not accepting the advisers recommndations.

2) For a complicated and involved situation like this I would recommend you select a fee based adviser. You are looking for expert, independent and impartial advice, not a sales pitch. You may get several recommendations from AAM, make sure you check out all recommended firms/people for relevent experience and independence.

3) Despite this being a complicated and probably difficult situation, you are doing the correct thing by dealing with it pro-actively and seeking out proffesional advice.
I hope it works out well for all parties.
Regards

 

[csirl]

I assume that your father is the owner of the business? And your brothers and yourself are all, legally speaking, employees or have been from time to time?

One suggestion is to keep the ownership and employee issues legally separate - I know its can be difficult to conceive in your mind given the overlap between the two.

So if the father passes away (which hopefully wont be for many years), then his children inherit equal shares in the business.

Any members of the family who work for the business will be employed as employees and paid a fair salary for their work. This salary could include bonus payments if the firm is profitable.

The devils advocate argument may be that it is not fair for those not working in the business to receive shares. However, it must be remembered that the shares are part of their father's estate - the capital value of the business he built up. Those that are working in the business as employees are receiving a good livelihood out of it - getting paid a fair wage for their efforts - they have a job/salary in addition to the shares whereas those not employed only have the shares.

This separation could also protect the business in the future. If any of the brothers currently working for the company decide to move onto something else or ultimately retire, then you can simply hire a replacement who is paid a salary and continue in business, possibly for many more generations.

 

[ramble]

Your father needs to talk to a solicitor with a very strong tax and estate background. Look for the letters TEP after their name. This refers to the Society of tax and estate practitioners. You can find a list of suitably qualified people on their web site. www.step.ie. The larger accountancy and law firms have such people as well as other expertise which will help your father decide

 

[seanpenn]

Thank you all for your considered advice... its greatly appreciated .
Its difficult to get my head around these issues....


So far he has had his accountant look at the issue about 2 years ago.
Things were different then, he was thinking of splitting the share of his personal assets and the business leaving the business to 2 brothers and the other personal assets, (not worth very much I think 10% of what the business is worth)

I think what Im looking for is an experienced accountant, to look at this issue, really just for Ideas, rather than a hard financial number crunching session.....
Really the main problem will be getting everyone happing with the ideas, the numbers can be crunched afterward...
anyone have an idea of how much a consultation will cost...
I will be paying myself right now, so big accountant feews are out of my league.