Rubin Rudman attorneys Christine Parise Cordes and Neal Splaine, co-chairs of the firm’s Corporate, Business & Tax Practice, were recently featured in citybiz for a Q&A on multigenerational planning for family-owned businesses.

In the article, Christine and Neal analyze the challenges family-owned businesses face as they transition from one generation to the next, from increased governance to succession planning. While founders typically make decisions independently, second- and third-generation companies must navigate competing priorities among family members who own part of the business but are not actively involved in its operations.

They emphasize that proactive planning is key to preserving both the business and family relationships. Clearly defining the distinction between ownership and management, and documenting expectations through shareholder and employment agreements, can help prevent disputes. Integrating the legal structure of the business with the family’s personal estate plans can facilitate tax-efficient ownership transfers while ensuring seamless operational control across generations.

They also note that implementing formal governance is a way to protect a family’s culture, preserve its legacy and support the long-term success of the business.

This Q&A is part of an ongoing series examining the evolving needs of family-owned and closely held businesses—an essential segment of the regional economy. Christine and Neal recently explored M&A for Family-Owned Companies in a previous installment.