The Hartford

Your Life, Your Future

Your Life, Your Future

Conversation Starters

Help your advisors help you by asking them . . .

Plan for your own and your family's future - and the company's. 

At this point, you probably aren't considering what your company will look like after you leave, but you've also come to know and appreciate the power of planning for the future.

Whether or not most of your resources are tied up in the business, your plan should include your will, and a buy-sell agreement if you have co-owners and life insurance.  Either way, work with your attorney to determine how you want your assets handled in the event of your death (and also who will serve as guardian for any minor children). It should also detail how you'd like your business assets handled.

Part of your planning needs to focus on who takes over after you - if you have determined that the business will continue.  Is it your spouse?  A child/children? One or more co-owners?  Would a key employee do the job better and would a buy-out, or partial buy-out, be preferable? Discuss all of this with family members, co-owners and/or key employees, if any, to gauge their interest in continuing the business. If there's nobody available or willing to take over the business, you can specify that the company should be sold and/or how its assets should be disposed of (assets should be listed individually).  All of this should be spelled out with the help of your attorney.

Buy-Sell Agreementt
If you have co-owners, and they wish to continue the business without you, how will your family be compensated for your share? You can work with your attorney to set up a buy-sell agreement, stipulating that the surviving co-owner(s) immediately buy your share, possibly with proceeds of Key Person Insurance (see The Growing Company, Insurance) so that your family won't be burdened with conflicts at a later date. This kind of plan should take into account the type of business entity involved (i.e., whether it's a sole proprietorship, corporation or partnership).


 

These materials provide general information, and should not be construed as specific financial, insurance, tax, legal or accounting advice.  You should consult a qualified advisor for individual guidance 
in these matters.  More details



    

Divorce-Proof Your Company
The unfortunate fact is that many marriages end in divorce. If your marriage or relationship were to go bad someday, what would happen to your business (especially if you and your 
spouse are co-owners)? Ask your lawyer what steps you can take today to protect your company. You hope it will never come to that, but if it does, you'll be prepared.