Take This Business Succession Planning Quiz to Learn Whether or Not You Are Prepared for the Future

business succession planning NJUnfortunately, far too many individuals avoid the process of business succession planning, figuring that they will deal with it at some point in the future. Unfortunately, as many business owners can attest, there are numerous reasons why someone may need to depart a business suddenly. These include disability, death, retirement and other issues. Without having an appropriate business succession plan in place, the business may continue to struggle significantly.

Answer these questions below to learn whether or not your company is appropriately prepared for business succession planning. If you find yourself answering no to the majority of these questions, realize that you are not alone and that you could benefit from a meeting with a business succession planning attorney. Getting things organized now and initiating these processes can help your business significantly and give you a great deal of peace of mind about the future.

  • Do you already have an identified successor for all of the key roles in your business?
  • Have you defined the vision and the personal goals you have associated with transferring management and ownership of the company?
  • Are there any family issues that could impede potential ownership and leadership decisions?
  • Does your business succession plan also take into account key estate planning issues such as minimizing estate taxes?
  • Do you have appropriate liquidity in the business in order to avoid a forced sale?
  • Is there a contingency plan in case an existing business owner becomes unable to work sooner than anticipated?
  • Is a buy-sell agreement already developed for transferring assets?
  • Have you figured out yet whether or not you or any other individual is depending on the sale of the business to meet cash flow needs in retirement?
  • Have you already had a business valuation conducted and viewed your company in the same way that a potential buyer would?

If you have not engaged in this process yet, it is not too late. Consult with a business succession planning attorney to learn more.

 

Common Misconceptions About Estate Planning 101

Even if you have not yet completed these documents, you probably have heard the terms “will” and “power of attorney” before. From that point, however, a lot of people fall for some common myths about these critical estate planning documents. Get the details on what you really need to know below.

First of all, a last will and testament is not the same thing as a living will. Your last will and testament is your official declaration of how you want your assets distributed when you pass away. If you do not have a last will and testament, then the state of Mississippi determines what happens to your property. Your living will, however, is the document outlining who you want to make decisions about your healthcare in the event that you are unable to do so. The biggest reason why people choose to have a living will is because they want to define what measures should be taken if their condition appears terminal. Your living will can share your wishes regarding the duration of and the level of care you’d receive in a situation like this. attorney (1)

Likewise, all powers of attorney are not one and the same. A power of attorney allows you to name someone else authorized to make decisions on your behalf if you are unable to do so. Your power of attorney could be temporary or limited, meaning that only circumstances trigger this individual being allowed to make decisions for you. A durable power of attorney, however, allows you to appoint another individual to represent you until death. Finally, your healthcare power of attorney is a different document altogether in which you name someone to make decisions regarding your health needs.

These might seem like small differences, but they are not. You need to be well-informed about your estate planning in order to have the documents that will help support your wishes should the need arise.

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