Go Into Debt to Keep My Mom’s Business?

Рет қаралды 26,389

Күн бұрын

Go Into Debt to Keep My Mom’s Business?
Start growing in business and leadership with the EntreLeadership Newsletter. Sign up to receive tactical tools, advice and resources in your inbox every week: bit.ly/3ktHxiM
Support our sponsors:
• NetSuite: bit.ly/NetSuiteEntre
• BELAY: bit.ly/351P9AE
• Payority: bit.ly/3IaA5SK
• Trainual: bit.ly/3EbBEgc
Learn more about EntreLeadership Events:
• EntreLeadership Summit: bit.ly/EntreLeadershipSummit
• EntreLeadership Master Series: bit.ly/EntreLeadershipMasterS...
Learn more about EntreLeadership Coaching:
• Elite: bit.ly/3tI2fN8
• Advisory Groups bit.ly/EntreLeadershipAdvisor...
• Executive Coaching: bit.ly/EntreLeadershipExecuti...
• Workshops: bit.ly/EntreLeadershipWorkshops
Listen to all the Ramsey Network podcasts anytime, anywhere in our Ramsey Network app: apple.co/3eN8jNq
Learn more about your ad choices: www.megaphone.fm/adchoices
Ramsey Solutions Privacy Policy: www.ramseysolutions.com/compa...

Пікірлер: 63

@barebaby 8 ай бұрын

I went thru this with my dads estate. Me and my sister don’t talk today because of it. It’s been 10years, your dad needs to call a family meeting now and sort this shit out it’s gonna be some feelings hurt but it has to be done. If this shit goes to probate without pacific details on how it’s gonna be divided probate is just gonna divide it equally and your gonna wind up having to sale everything.

@kaohsiung99 8 ай бұрын

"Equal" and "fair" are two completely separate concepts... especially in the context she described.

@isabelbecerra9258 2 ай бұрын

I paid fir my sisters private schooling. My in laws got her employment that she didn’t want. I then went to school Earned a degree. Got a career. My sister did nothing. 40 years later she accused me of abandoning the family because I stopped supporting her (and her husband n children). 10 She has chosen to “cut me out of her life n the fsmily” and I couldn’t be happier. Siblings don’t appreciate sacrifices you make for them! Dave gave great advice!!

@Big-Government-Is-The-Problem 2 ай бұрын

that sounds insane on your part to do that and ofc more insane on her part to feel entitled rather than grateful for the handouts she got.

@ReadingGodsWord365 3 ай бұрын

“Fair” is where the tilt-a-whirl and cotton candy is. Dave is awesome.

@kimmonday4791 Ай бұрын

My parents wanted everything equal. I did all the work, your 20 plus years. We all received exactly the same.

@zachschwartz1586 8 ай бұрын

She should know her numbers better on the business if she’s a CEO

@marisaruiz2529 6 ай бұрын

If you have this kind of money put it in a trust. Went thru this and thank god nobody was able to go against the trust. Went smooth and paid out in a couple months.

@karenk2409 4 ай бұрын

A trust is magic, solves a multitude of potential nightmares. I have one.

@fishmonger7020 8 ай бұрын

This woman is the “CEO” of this business and she clearly doesn’t know the valuation of anything.

@Tkyl0-0 2 ай бұрын

She is downplaying it so that it isn’t used as evidence. She is lying.

@rajbeekie7124 8 ай бұрын

This woman inherited the business. She does not come across as a CEO. I am guessing it is an assisted living business with many part-time workers.

@dikshithaariyawansa1299 22 күн бұрын

Well she did a vague discription like a healthcare company.

@o.p.4254 8 ай бұрын

Thank you for taking this call. Dave’s answer was very helpful.

@baysin5309 8 ай бұрын

How do they pay 100 employees with only $6 million in revenue?

@Mwap439 8 ай бұрын

Literally my question. I guess the answer is 7.25 an hour?? Lol

@kathyjones1078 3 ай бұрын

Maybe home healthcare? Low overhead. And poorly paid employees.

@kylekallsnick8247 3 ай бұрын

Easy. She is running a pyramid business selling “healthy essential oils” and the other 99 are selling and recruiting so this makes her an entrepreneur and ceo and business owner. Pyramid business lingo

@laddmorrell3765 8 ай бұрын

If the estate includes some cash (stocks, etc.), that could possibly be used to buy out the other two siblings from their share of the medical company. Alternatively, have the healthcare company buy a life insurance policy on Dad and use the proceeds of the life insurance to buy out the siblings' share of the company when he dies.

@Nick-ue5bp 8 ай бұрын

This person seems like she’s not gonna take any of his advice and make a big mistake.

@stephengamber7000 8 ай бұрын

Yes, sadly. Some people will see the stove is hot and not touch it, some will hear the stove is hot and not touch it, and some will just have to touch the stove and get burned.

@OneAndOnlyKJx 8 ай бұрын

This woman was annoying me. Dave was spouting the truth, and she didn't seem to agree.

@p.gizzle90 8 ай бұрын

Yahhh, that “umm hm.” was getting on my nerves. It’s like she wasn’t engaged at all. Just wasting time.

@Wolfpacker Ай бұрын

I like that phrase " a fair is where the tilt-a-whirl and cotton candy is"! I tell my kids all the time life is not fair. I'll have to start using that instead. LOL

@liasilva2789 8 ай бұрын

They can stipulate that she shares the profits from the healthcare business for a number of years that makes sense in order for her to have it solely hers

@futurethinking 8 ай бұрын

This, she doesn't want to go into debt and because of that, she is demanding more of he estate than the others? what a convenience excuse.

@Holdeenio 8 ай бұрын

As the CEO, most likely already holding some of the shares, just buy out the other shareholders while everyone is still alive. Borrow money from the company itself and pay them off now, then repay your own company. Problem solved. His farm, cash and other assets then fall as parts of his estate.

@EdwardLamberton 4 ай бұрын

Another option is to start buying out shares of the business now.

@RomilCPatel 8 ай бұрын

Why doesn’t she just buy out her father’s equity? She could take her likely high salary as a CEO and use it to buy into the business. If she continually buys out the equity she could end up being the sole owner in just a decade or so.

@p.gizzle90 8 ай бұрын

She 1-either already suggested something as such to the father and didn’t stay persistent on it to a reasonable solution, or 2- she’s intimidated to even bring any of this up bc it’s going to be an argument, misunderstanding, stressful chaos situation she doesn’t want to deal with.😖…I understand both sides regardless, but I do know when the father go it’s going to be slight hell with her siblings. More so, her sister than brother.😥

@richardkoontz831 8 ай бұрын

If I was the dad/ owner, I may look at my CEO options. To me having a CEO who is unwilling to grow my business in hopes of a future purchase is suspect.

@M22Research 8 ай бұрын

It’s *not* “weird” for a family member who is operating a family business to grow it… even if other family members end up benefiting! This business is her mother’s legacy, not a pallet of dollars sitting in a bank vault. What she should consider - with her father, modifying her own compensation to reward her for growing the business. Then she gets a double reward for her extra efforts - the direct reward for growth, and her share of the then larger company.

@Big-Government-Is-The-Problem 2 ай бұрын

thats nonsensical... if you're not working at the company you're not entitled to anything from it. my brothers and i own a construction company, one brother that owned 1/3rd wanted to quit and it wasnt even a question of if he would give up his part or not, his payout was a $50k work truck which was ofc worth way less than 1/3rd of the company and everyone was happy with that. having a good family relationship matters more than money. sure my brother could have played hardball and forced us to sell off all the assets but he is an ethical guy that doesnt want to cause drama. financially was it the smartest move, no, but thats not what matters most in life. we are all happy in our careers and thanksgiving is a great time with no drama

@M22Research 2 ай бұрын

@@Big-Government-Is-The-Problem this was a six month old comment, but your scenario is not the same. If their dad wishes to shear the profits of his business with his kids that is completely his choice, not yours.

@Big-Government-Is-The-Problem 2 ай бұрын

@@M22Research obviously, i never said it wasnt his choice lol. you disregard my point calling out your point and pivoted like a typical leftist... your point was that its fine to have a leech not working while other family members grow the business and he/she thats leeching benefits

@hassandawudi4810 8 ай бұрын

But she's getting paid to do the work for the business. CEO pay is around $300,000/year. Let your siblings run it for that salary, then take it all when your father dies. Doesn't seem fair, does it

@stephenwalton9646 3 ай бұрын

“Fair,” is a word used by children to terrorize their parents. The world never has been or will be,”Fair.”

@bigi2747 8 ай бұрын

That sister is not agreeing to anything that implies she gets 1 cent less!

@tomsassurance 2 ай бұрын

The father can leave the assets who anybody in any proportions. This includes marrying a 19 year old and giving her everything.

@Big-Government-Is-The-Problem 2 ай бұрын

6m a year in revenue with 100k employees is not great? they must have crap pay for the employees and or very low profits. 6m/100 is 60k, so they cant even pay each employee 60k

@tightwadtv3421 2 ай бұрын

I'd put my money on the farm being worth more in 10 years in that area.

@Cohen.the.Worrier 2 ай бұрын

What I'm missing here, she doesn't have to own the company, to run it. She could own 51% of the shares and run it.

@ericonca 8 ай бұрын

Inheriting 100 employees with only $6M rev? That seems low

@BradDavis-gw7do 8 ай бұрын

Yes it does

@joeb1522 8 ай бұрын

I was thinking the same. If the employees make 60k each, plus the company pays another 20k in payroll taxes and benefits, that's 8M in employee costs with only 6M in revenue. They must be part-time employees or minimum wage earners or both.

@rachelharrison7961 8 ай бұрын

The caller was asking about buying her sister out now. That implies that the sister already owns part of the business. Why would you buy out a future inheritance? The sister could die tomorrow and pre-decease the father.

@user-mv9tt4st9k 8 ай бұрын

I would give dad a hard "No" to his "my will directs you to take out a loan to buy your sister out of the family business that you have been CEO of." I would suggest he direct his estate to sell both the medical business and the farm, and then split the profits between the siblings. The tax hit might be enormous but it seems better than being told to go into debt to benefit someone with little to no interest or investment in either business. However, if she declines, her sister may be in a position to buy her out the business. Whatever the details, it is a messy inheritance when it should not have to be. It did not sound like she was on board with having that talk with dad and/or her siblings. A good route for her might be to get out of the family business before she becomes the guarantor of her sister's inheritance.

@rachelharrison7961 8 ай бұрын

@@user-mv9tt4st9k I don’t see any problem with factoring sweat equity into the disposition of the estate. The caller gets the business because she makes it go. Same for the brother with the farm. The third child gets whatever the father thinks makes sense.

@Xanatissimo 16 күн бұрын

She is CEO and doesn't know her numbers? I'm left wondering if she is doing a good job.

@AugustusMcMillan 6 ай бұрын

the stranger comparison doesn't make sense. bcuz she isn't buying it.

@danieljohnson4418 8 ай бұрын

Do it. You'll be fine.

@rebeccaoprea9917 8 ай бұрын

I think the family member who runs the business, gets the business of their parents which to leave it to them.

@rolo8950 5 ай бұрын

Videos like this make me happy that im comfortably poor

@martinhorna649 5 ай бұрын

Yes enviousbess makes one happy for short period of time.

@sethkostur6785 8 ай бұрын

There needs to be some more detail in this call for answers to be correct. First of all does the dad own all of the businesses now or were they divided up after the mom‘s passing? I grew up on a farm so Dave’s grasp of appreciation of farmland is far-fetched. My parents made roughly 10 times their money in 20 years on farmland, and whether Dave knows it or not, that farmland is already business, regardless of who owns it because you can do several things to make money off of that land, and that land is a great hedge against things that are going on in the world now. Some pretty bad advice if you actually want to grow wealth.

@BradDavis-gw7do 8 ай бұрын

Some of the wealthiest people I know are farmers. Fun fact….Bill Gates is the largest farmland owner in the US.

@sethkostur6785 8 ай бұрын

@@BradDavis-gw7do Bill Gates is not who I’m talking about here. He owns farmland for a far different purpose than 99.5% of all other farmers do he does it for the control. Good farmland will appreciate in value I would take the farmland before I took the other businesses, because that farmland will always be valuable, the other businesses might not always be valuable

@BradDavis-gw7do 8 ай бұрын

@@sethkostur6785 Understood. I grew up on a farm as well. I’m in the same boat as you. I’ve also worked in the agricultural sector for over 30 years. I realize Gates is the exception to the rule. He probably doesn’t realize what he owns.

@martinhorna649 5 ай бұрын

Yes people generally underestimate opportunities farm land owes.