Business Succession Planning

BenefitsDrive Experts Provide Businesses and Families with Succession Solutions That Sustain their History of Accomplishments.

New and seasoned companies share the same need when it comes to longevity – to insure their future. Formal planning is needed to ensure the continuation of a closely held business due to the death or disability of an owner or partner. The unfortunate truth is that many businesses fail before they transition to a second generation. Most failures could have been avoided by having a succession plan in place.

Successful businesses sustain their history of accomplishments 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 the business. A properly drafted buy-sell agreement along with the appropriate balance of life & disability insurance can serve to:

• Minimize the possibility that the business might fall into the hands of outsiders.
• Minimize the possibility that the parties involved will not be able to agree on a proper value for the business.
• Life & Disability Insurance can help ensure enough funds will be available to purchase or buy-out the ownership shares.
• Provide a deceased owner’s estate with needed liquidity by converting an illiquid asset into cash.
• Provide for the orderly transfer of the ownership of the business.
• Establish the value of the business for estate tax purposes.
• Create a stronger market for the business.

Personal succession plans are a must for transferring and preserving wealth, mapping out future cash flows, designing and implementing a global investment strategy, 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:

• What type of Trust is right for me?
• Do I need life and disability insurance?
• Do I know understand my estate tax liability?
• Have I provided the appropriate flexibility to my heirs?