Family owned and operated businesses have very unique, distinct dynamics that can severely impact the success of the business (and the unity of the family) if they are not addressed and properly managed. It is of critical importance that proper advance planning be implemented to deal with the retirement, illness or death of the founder(s) and/or other key family members. Of all the elements of effective business succession planning, perhaps most important is communication. Sadly, families that do not regularly have business meetings to discuss the day-to-day operations and mission of the business are often the ones that are hurt most when a founder takes ill or passes away. The following are illustrative of some of the issues that need to be addressed and steps taken to implement an effective succession plan for a family business:
In the past three years alone, the number of Medicare patients in the hospital being classified as an outpatient under “observation” rather than being formally admitted as an inpatient has jumped twenty-five percent according to a recent study conducted by Brown University. Even without the study, the fact that this is occurring more frequently can readily be attested to by the many elder law attorneys witnessing their clients having to personally pay for the costs of their rehabilitation in a skilled nursing care facility rather than said costs being paid for by Medicare.
Whether it’s because we are living longer or because divorce has become more prevalent, we are seeing more couples, ages 60 or 70, tie the knot. Many do so unaware of the rights and obligations they inherit should their spouse become ill and require long-term care. If such a case occurs, the financial consequences can be devastating.
Many years ago, I had my first encounter with the consequences that result when clients fail to take the necessary steps to protect their home from the cost of a nursing home.
Welcome to the Westchester County Elder Law Blog! Each week, I will be posting about various legal topics from elder law to estate planning. My goal is to provide you with timely and relevant information so you can make the best decisions about your future. There is no better time to ensure your life savings is protected. You have worked too hard not to enjoy the benefits of your life's work. If you have questions about any of the topics posted here or would like to schedule a consultation, please do not hesitate to contact me. I practice exclusively in elder law with three decades of experience protecting the rights of seniors and the disabled. I maintain offices in White Plains and Somers, N.Y. and work with clients throughout the New York metropolitan region. I look forward to hearing from you soon! Sincerely, Anthony J. Enea, Esq. Managing Member Enea, Scanlan & Sirignano, LLP Phone: 914-269-2367