We all assume that our businesses will continue to operate but as I indicated in my blog yesterday, unforeseen tragic events do happen. Are you prepared if the owner of the business dies? Will there be someone to run the business? Do you have a succession plan? If you have to sell the business can someone run it until the business is sold? Does the owner of the business have a will or multiple wills? In Canada an owner of a private business can save a lot of taxes if he has two wills. Please contact your lawyer to find out if this relates to your business.
If the owner dies, where is his will? Many people think that the best place to keep a will is in a safety deposit box. Who has the key? Is the deceased person the only one who has access to the safety deposit box?
Many children, even though they are grownups now, do not want to think or plan for the mortality of their parents. If the parents are the owner of a business, it is more important to make sure a plan is in place in case of an accident. It only takes one accident and as you get older, you should not pretend that this is not an issue. Many people may want to live to 100 and do not do any planning. I know many people who have run major marathons who was incapacitated by a stroke or heart attack. If you become incapacitated because of a stroke, will you be in any shape to start planning an emergency procedure from your hospital bed? Remember, planning is for when things go wrong, you may or may not ever look at your plan if everything is running smoothly.