Business Planning
THIS IS AN ADVERTISEMENT
The Wealth Planning Company associates assist clients in obtaining legal documents to protect their businesses, other owners, their employees, and their assets.
If you own a business, you may need a Business Succession Plan to address what should happen in the event something happened to you. In a Business Succession Plan, you may designate a successor, dictate how decisions should be made, and determine how to value your business. These decisions may be crucial to maintining positive cash flow and business continuity in your absence.
Life Insurance may be a useful tool in protecting businesses as part of a Business Succession Plan. For example, in a Cross-Purchase Agreement or Entity-Purchase Agreement, life insurance is purchased on all of the partners so that, in the event that one partner passes, the death benefit proceeds may be used to buy out the deceased partner's shares. These types of Busines Succession Plans allow partners to provide cash to the deceased partner's family while ensuring that the business can keep doors open.