Do not be one of the over 70% of the family business owners that have not done any business succession planning.
Why do two-thirds of all initial business transfer fail?
Tough questions need to be asked and answered or a business that took decades to build can be destroyed overnight.
If your financial and estate plans are not carefully coordinated, there may not be enough cash to make sure your objectives are carried out. Life insurance can be an effective tool to provide liquidity to fund business transfers or to cover estate taxes or business debts upon the death or disability of the business owner.
The business buy-sell agreement is an important tool to govern the transfer of a business interest upon the occurrence of a triggering event such as retirement, disability or death of the business owner. The buy-sell agreement can be invaluable when the business owner wants to ensure a smooth transition to complete control and ownership to the party that will keep the business going.
Contact Thousand Oaks estate planning attorney Kent W. Keating to find out more information about setting up a Family Business Succession Plan. Phone: 805.719.2246.