Business Succession

Most business owners place succession planning on the back burner. Consequently, there is no plan if an owner dies or becomes incapacitated. Important decisions will be made under duress and will likely be contrary to your wishes. Insurance plans can provide funding for business succession to family members, or to shareholders who are active in the business.

  • Advantages to Family Members

    • Avoid making business decisions at a difficult time
    • Minimize estate litigation with respect to valuation and payment
    • Guarantee cash payment for all or a significant portion of the shares
    • Pay taxes generated by share transfers
    • Take advantage of Capital Gains Exemption ($800,000 on QSBC shares)
  • Advantages to Active Shareholders

    • Provide transition funding on death or disability
    • Purchase the shares on death or disability
    • Agree on value and pricing for shares in advance
    • Guarantee the market for the shares
    • Assure continuity of the business without interruption
    • Succession of the business is predetermined, orderly, and timely