Business Succession Planning
Succession planning in the case of retirement or death is a critical element to a business’s success and possibly even survival. While this can be a difficult issue to discuss, it is an integral piece of any comprehensive business financial plan. Tradition will help you incorporate your future business transition with your estate and retirement plan, creating an integrated wealth management process.
The death of a partner or major stockholder in a business can have devastating effects on both the deceased partner’s surviving family and the business. The business is concerned with gaining control of the deceased partner’s interest at a fair price so that it can continue operations without interference from the surviving family members. The family members often seek to sell their interest in the business and need capital for estate tax settlement purposes. We can help you, your business partners and your loved ones approach succession planning in a constructive manner that ensures they avoid problems and your family is well cared for in the event of your death. Life insurance for business succession purposes can provide the required liquidity to allow a surviving partner to buy out the surviving family’s share, providing them with cash in place of an illiquid business interest. As your Trusted Adviser, we do not receive commissions but only advise on amount and type of policy. A written succession plan that details timing and valuation metrics is essential.