Only 30% of business owners—age 50 to 60—have a formal business continuation plan in place. Typically, it takes a heart attack, the death of a business peer or a bitter internal argument to trigger the start of such a process. While there are many organizational and management issues to be considered, the financial aspect of the planning process can make or break your ability to successfully pass the business on to the next generation of ownership.

Ask yourself these questions:

• If a partner dies or becomes disabled, is there an up-to-date plan in place for passing the business on? More important, does everyone involved know what that plan is and how it will affect them?
• Does your firm’s current buy/sell agreement still reflect the wishes of all principals? And, are the insurance policies that fund a buy-out still substantial enough to cover the terms of that agreement?
• Does your plan take into account the most current tax laws?
• If you died tomorrow, would your heirs be forced to sell their interest in the business—at less than market value—just to pay federal estate taxes?
• Have you examined the various life insurance and trust options that can ease your family’s tax burden and, equally important, provide the liquidity needed for painless payment of taxes?

If you’ve never asked yourself these questions—or don’t like your answers—Brooks' Financial Services experts can help you review the many financial options available to assure your company’s future.