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Business continuation planning is the process of identifying and implementing strategies that will allow clients to transfer their business while preserving its value. They may be looking ahead to retirement, or planning for the succession of their business in the event of their disability or death. They may want to transfer the business to family members, their business partners, current employees, or outside buyers.
Whatever the case, the first question they must ask themselves is whether to plan to sell the business or give it away. The answer may depend on their current financial needs and choice of successor. Next, they must decide whether they want to transfer the business during their lifetime or upon their death.
The continuation plan they choose may include an outright sale of the business, implementation of a buy-sell agreement that is contingent on triggering events (e.g., retirement, death, disability), transfer of the business using lifetime gifts, and/or transfer of the business through a will or trust. Each of these choices has certain strengths and tradeoffs. Any of them, if implemented in a timely and proper fashion, can help the business owner achieve their financial goals and ensure a smooth transition of business ownership to their successors.
Neither MassMutual nor any of its employees or agents are authorized to give legal or tax advice. Consult your own personal attorney legal or tax counsel for advice on speficic legal and tax matters.
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