For any business owner, especially an owner of a family business or partnership, succession planning is an integral part of avoiding serious financial and tax problems resulting from an owner’s death, incapacitation, divorce, bankruptcy, sale, or retirement. Questions regarding future management and ownership should be resolved up-front to promote a smooth transition.
A buy-sell agreement, which can be referred to as a business will, is vital to ensure the buy-sell arrangement is well-funded and guarantee funds are available when the buy-sell event is triggered. If you want to pass your family business along to the next generation, do not put off business succession planning. Delaying planning is the worst thing you can do.
Key-Employee Insurance offers companies protection in the event of an untimely death or disability of a business partner, key senior executive, top salesperson, or any other essential employee. These types of policies provide the company time to find a replacement for a vital position and safeguard business operations. It could mean the difference between enduring success or the downfall of your company.