By Susie Brousseau/Compass Bank
Living-transition planning is designed to keep a business as profitable and as valuable as possible when ownership changes hands, thus maximizing returns to the owner. Today,
more than ever, business owners understand that succession planning is not death planning. Most owners already have in place a contingency plan to provide for family and business
in the event of a death. However, they often fail to prepare for the more likely scenario that employees will enjoy a full lifespan, and that they eventually will want to redefine
their relationships with their businesses.
As a rule, the unique problems of business owners are best addressed through a team of specialists that includes the client's attorney, accountant and other key advisors. A
collaborative approach helps the client receive thorough and objective counsel in a rapidly evolving legal environment and contributes to the successful implementation of
objectives. Recent court rulings have confirmed the importance of adhering to specific criteria for assessing the value of a business, and not observing these criteria can result
in agreements being disregarded for estate tax purposes.
Remember, the best advisor is not one who replaces the client as decision maker, but one who helps clients clearly see and evaluate different possibilities. A strategic
approach to transition planning should present the benefits and drawbacks of each alternative, enabling clients to determine which best suits their needs.
Susie S. Brousseau, CLU, ChFC, CFP, is vice president/wealth planning for Compass Bank's Wealth Management Services in Scottsdale, AZ. She can be reached at 480.585.8133,
[email protected].