Elizabeth M. Bennett, MBA
Principal and Certified Financial Planner™
Intercoastal Wealth Planning
Certified Financial Planner™ and Certified Financial Fiduciary Beth Bennett has advice for business owners: Consider a business succession structure before you may encounter a problem. As in an article from the Conway Center for Family Business, Bennett stresses to her clients that there are two main reasons for considering such a plan.
The first being taxes, as upon the death of a business owner, there may be estate taxes due, and having a plan in place may shed light on how to manage them. Unfortunately, failure to properly prepare may lead to loss of control over the financial disposition of the company.
Second, without a succession plan, a decline in the value of the business may occur in the event of the death or unexpected disability of the owner.
Three basic steps for the process of business succession include: Identifying your goals to make it easier to fulfill them. Whether seeking future income, creating a family legacy, or establishing the values you wish to ensure, being aware of your objectives is key.
Pursue your objectives with a number of tools available, from gifting shares to establishing a trust or instituting an employee stock ownership plan. There are many options, says Bennett.
Lastly, implement the strategy and revisit it often to assure its relevancy in the face of life’s changes.
As with any financial endeavor, Bennett invites clients to seek her services before moving forward with a succession plan to assure that any questions are answered and that there is a comfort level in moving forward with the process.
Securities offered through J.W. Cole Financial (JWC) member FINRA/SIPC. Advisory Services offered through J.W. Cole Advisors, Inc. (JWCA). Financial planning, insurance, and tax services offered through Bay Financial Planning and Tax Services, LLC DBA Intercoastal Wealth Planning , a Registered Investment Adviser, Bay Financial Planning and Tax Services, LLC and JWC/JWCA are unaffiliated entities.
Intercoastal Wealth Planning
6751 North Federal Highway, Suite 400, Boca Raton, FL 33487
561.210.7339
intercoastalwealth.com
