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Premature death and disability
Is something you have to consider
if you want to protect the long-term financial health,
of your BUSINESS,
for and on behalf of your Beneficiaries,
or your Partners, if applicable. |
This is never more so, than when you are considering a transfer of your ownership to new family member. This new owner must, in the event of their sudden and early death, cover you for future earnings etc.
It is difficult enough planning for the foreseeable events in life, let alone those
you don't expect. But a proper business succession plan will go a long way in assisting you to
address those potential risks (and those you don't anticipate).After all, you want to ensure that your pension and family income is secure for a great many years. Death and disability protection within a business goes beyond the realm of personal life insurance.
In the event of a life-changing event happening to you, a partner, shareholder, or keyperson you want to ensure that; |
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 | You have an effective "Buy and Sell agreement" click here that will ensure the smooth transition of ownership interests.
| Your will, living will click here and powers of attorney are coordinated with your succession plan and that provisions are made for any "trusts" click here you may have.
| You have provided the vital finance to ensure the continuation of the business through the transition period as well as to enable successors to purchase an interest if need be.
| Your loss of profit or retraction of credit as a result of death or disability are minimised. |
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FILL IN the FORM below for a NO-OBLIGATION quote
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"succession plans"
also need to provide clarity on
what happens to ownership in the event of;
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| The retirement of an owner.
| A non-resolvable dispute.
| A marital breakdown, where a spouse becomes entitled to a share in your business.
| Insolvency of any of the owners.
| Any illegal actions of an owner. |
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questions you should answer
In the event of death or disability will the business be:
liquidated; sold to family members; given to family members; sold to third parties |
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Liquidating and Selling the Assets
| For how much would you sell the business today?
| How much would the business lose in a forced liquidation versus for what it would have sold as a going business?
| Do you have any other business-related debts?
| Do you want to pass them along to your heirs or eliminate them at your death? |
| What arrangements have you made to see that your objectives are carried out? |
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Keep it in the family
| Which family members would you like to own your share of the business?
| Who would run the business on a day-to-day basis in your place?
| Have you talked to him or her about it, and is he willing and able to run the business?
| Are your heirs and the surviving owners compatible?
| Do your creditors know about your plans, and have they agreed to maintain their business credit account with someone else in charge?
| How much annual profit or loss do you estimate in the next five years?
| Would you want to guarantee these profits to your family, and if so, for how long?
| Would your death cause other outstanding monetary needs? |
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Selling the business
| To whom would you sell your share? |
| What would the price and payment terms be? |
| How will it be funded? |
| Would the buy-out be a legally enforceable agreement? |
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Other questions
| What amount of income would you or your family need in the event of you suffering a life-changing event?
| Do you want to guarantee this income and if so, for how long? |
| What degree of business interest will be needed to meet your or your family's need for ongoing income?
| Will that need be provided by a continuing income from the business?
| Or from a lump sum of capital? |
| If there will be a shortfall, what contingency plans do you have to make up the difference?
| Do you have a Buy and Sell agreement for partners and shareholders?
| Do you have sufficient insurance to provide the capital for the purchase of your business interest on death or disability?
| Is there a need to reduce or eliminate business debt on your death or disability?
| What tax will arise (e.g. CGT)?
| Do you have an up-to-date Power of Attorney?
| Are you aware of the legal consequences of family law, especially with regards to marriage? |
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These are some of the issues you are faced with in formulating a
business succession plan for a family business in the event of
death or disability.
If you have any concerns about your BUSINESS,
please call our PRACTICE urgently
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FREE DOWNLOADS
"BUY & SELL AGREEMENT"
"KEY PERSON ASSURANCE"
"PERSONAL LIABILITY AGREEMENT"
apply for FREE copies of the
Documents above no obligation
(click here)
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