As a business owner, approaching retirement brings along a lot of questions. What happens to the business when you retire? How do you hand over the reins? What about the taxes involved? These are questions you can discuss with your Co-operators Financial Advisor.
Setting goals for the future of your business
Many business owners hope that their children would someday be able to take over the family business. Another option to think about is to transfer your business in case you or your business partner(s) die prematurely, so that you can pass the business on to the next generation without leaving them large tax or estate settlement costs.
Establish an estate plan
Work with a Co-operators Financial Advisor to prioritize your goals and set up an estate plan, which you can review and update regularly over the years. Start by:
- Reviewing wills, powers of attorney, and personal health care needs
- Estimating estate taxes and planning for future tax liability to protect the family business
- Discussing options for transferring ownership to your children
- Finding ways to minimize the potential of financial disputes to avoid having your heirs sell the business
How life insurance can help
Life insurance can be a valuable tool in ensuring the continuation or succession of your business and can provide:
Insurance for key persons, business owners and partners
Debt and collateral coverage
Buy/sell agreement funding
Business estate planning
Business succession planning
Why choose a buy-sell agreement?
A buy-sell agreement provides funds to cover the financial needs of a business owner’s heirs, employees, creditors, surviving partners and shareholders.
For expert advice on planning a successful financial future for your business or farm, talk to your local Financial Advisor.