By John A. Wenstrup
The transfer and succession of business ownership is among the most demanding challenges faced by business owners today. Whether shareholders, unrelated individuals or family members own a business, succession planning is the most critical task required to secure the future of the enterprise. Less than one-third of today's family owned businesses survive into the second generation and less than 13% make it to the third generation. Failure to establish and keep current a plan for the orderly succession of the business is at the root of the problem.
We offer a full range of products and services designed to help assure the successful transfer of your business while protecting owners as well as key people.
A Buy-Sell Agreement is designed to address the financial impact that occurs when a principal voluntarily or involuntarily leaves a business. There are several different ways to set up these agreements. We can help you determine the best plan for your business that addresses the three main triggering events -- death, disability, and retirement.
What's more, we can team up with your professional advisers to make sure the arrangements of your Buy-Sell plan and purchase price evaluation are properly funded now as well as in the future in order to provide the financial ability to execute the agreement.
Estate Planning and Analysis - Owner/Family
We can coordinate with your legal council to help determine the best method of evaluating the options of what to do with the business when the principals are deceased. In addition to researching and providing a competitive selection of insurance products to fund estate tax liabilities, we can coordinate Trust Services, Investment Management and Private Banking to round out the advice and services needed for a successful Estate Plan.
Disability Wage Continuation
We can help design and implement a Disability Wage Continuation Plan for your business. This plan protects your income or the income of your key employees if you were unable to work due to sickness or accident. This is also an affordable way of attracting or retaining key employees.
Key Person Insurance
Key Person Insurance plans are designed to protect a business from financial losses as a result of the untimely death or disability of a key employee or business owner. This type of insurance plan could also fund non-qualified deferred compensation plans for key executives and owners.
Once again, we can help you determine which type of plan makes sense for your business needs and which employees would be categorized for this type of insurance.
Executive Salary Continuation Plans
Our staff of professionals can help with Executive Salary Continuation Plans. These plans are designed to provide income to the principal or any surviving family members after they are no longer associated with the business.
The Wealth Alliance does not provide tax or legal advice. Tax laws are subject to change.
John A. Wenstrup is a Chartered Financial Consultant and president of The Wenstrup Company. John specializes in retirement, wealth transfer & business succession planning.