Both new and seasoned companies share the same need when it comes to longevity – a plan for the future. In order to secure the continuation of a closely held business at the death or disability of an owner or partner, formal planning is necessary. The unfortunate truth is that many businesses and individuals fail before they are transitioned to a second generation. Much of this failure can be credited to a simple lack of planning.
BenefitsDrive Experts Provide Businesses and Families with Succession Solutions That Sustain their History of Accomplishments.
They sustain their history of accomplishments and success with a planned transition in event of a key employee’s or business partner’s death or disability. It’s never too early to develop a plan to protect the future of your business. A properly drafted buy-agreements along with the correct balance of life & disability insurance can serve several purposes for business such as :
- Minimizes the possibility that the business might fall into the hands of outsiders.
- Minimizes the possibility that the parties involved will not be able to agree on a proper value for thebusiness, and puts everyone on equal footing while all the parties are alive.
- Insurance can help ensure that enough funds will be available to make the purchase of theownership shares.
- Provides a deceased owner’s estate with needed liquidity by converting an illiquid asset into cash.
- Provides for the orderly transfer of the ownership of the business.
- Can establish the value of the business for estate tax purposes.
- Create a stronger market for my business.
Personal succession plans are a must for transferring and preserving wealth, mapping out future cash flows, designing and implementing a global investment solution, reducing estate and income taxes, and providing for the family in the event of a disabling health issue or even loss of life. Things to consider when creating a personal succession plan:
- Is an Irrevocable Trust right for me?
- Do I need life and disability insurance?
- Do I know is I know my estate tax liability?
- Have I provided flexibility to my heirs?
(BenefitsDrive experts have been assisting businesses and families for over 20 years.)