AND the BEAT GOES ON…
My focus in this column has primarily been directed to the actions families must take to preserve their wealth for the next generations, in accordance to Proverbs 13:22. However, I have recently observed problems that families suffer when their businesses do not have a structured plan to continue operating profitably. So, here are guidelines to help you to begin to structure a succession plan for your business.
1. What is your business worth?
2. Who do you want to manage or control your business if you or your top manager becomes disabled or dies?
3. Who do you want to benefit from the “value” of the business after you are gone?
Your answers to these questions will help your attorney to structure your living trust, will, and power of attorney, assuring that your wishes for distribution and/or retention of all your business assets are honored.
In addition to the legal instruments that your attorney will prepare, you may also consider contacting your insurance agent for “Keyman Insurance.” This is an insurance policy that can provide your business the money needed to help compensate for the loss of leadership or management if you or top management persons becomes disabled or die.
If you own a business, you have already planted a seed for your family to prosper. The things that I have suggested that you do to establish a succession plan are essential to assure that your seed continues to produce a harvest. “Commit to the Lord whatever you do, and He will establish your plans.”, Proverbs 16:3. And the beat goes on….
Bye for now,
Bren
QUIZ: What services can you expect a financial advisor to provide if you are not wealthy?
Answers to last week’s quiz: It has been reported that about 50% of adults make New Year’s resolutions and 25% drop them in a month and only 10% successfully accomplish the goals of their resolutions.
Get more detailed answers to last week’s QUIZ question or for broad questions that you may have, please call me: 773-817-0601 or 773-819-1700
Disclaimer: The illustrations presented in this column are not, nor are they intended to be, legal, financial, or any other licensed professional advice, you should contact the licensed professional of your choice for advice on your individual situation
