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McCurrie McCurrie
& McCurrie, L.L.C.

680 Kearny Avenue
Kearny, NJ 07032-3010
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Estate planning can prevent drawn out, costly family business battles

Families with businesses are proud of what they've accomplished. Many times parents who run a business will try to get at least one of their children, if not all of them to be a part of the family business with hopes that their children will take over the business some day. When an estate plan isn't in place, these dreams can fall apart after the parents pass away, leaving siblings to fight over how to run the business properly.

While many families get along at first business relationships and family relationships can be hard to maintain at the same time. The family might often blur the two relationships, which can lead to family disagreements at the business. If a family doesn't establish who will be left in charge of the family business and what role or stake each person should have in the business, there can be legal and financial consequences.

One family in another state built a business that they were proud of, leaving it to their three sons. Without any clear direction of who would run the company, there was a power struggle, leaving one brother pushed out of the company and a lot of hurt feelings.

This led to a court battle that spanned nine years, and eventually resulted in the brother who was forced out of the business being paid millions of dollars for the way he was treated and his stake in the business. This might be an extreme example, but it is still important to have a proper estate plan no matter the size of the family business.

Source: Star Tribune, "Lawsuit over control of family-owned MICO ends with $21.8M award," David Phelps, March 31, 2013

-Our law firm can help families understand the transition of a family business through New Jersey estate planning. Please visit our website to learn more.

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