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Part Two: Thought about a continuation plan for your business?

 

In the April 2012 edition of The Vault,  Jerry Vanderzanden, CLU, ChFC, of  Coastal Financial Partners Group, LLC provided Part One of his article on Business Continuation Planning that addresses the decisions that a business owner must face to help ensure that the business they created continues on after they either sell the business or it is passed on as a result of death, disability or retirement.
Part Two, in this issue provides a business continuation questionnaire for you to use as a workbook on this topic.


Click here to read Part One of Jerrys article in the April edition.
Business Continuation Questionnaire
Compliments of Coastal Financial Partners Group, LLC

     A. Business Continuation Objective (check one)

Do you want your business interest: ___Retained for Family (Section B)   ___Sold (Section C)   Liquidated (Section D)

      B. Objective: Retain the Business for Family

  1. For whom do you want the business interest retained?

    Name

    Age

    Relationship

    Current Position

    Ownership Interest

           

     %

           

     %

           

     %

           

     %

           

     %



  2. How do you want your business interest transferred? (check one)

    ___ by will (at death)      ___ by gift (during life)      ___ by sale (during life or at death)

    Funding? _____________________________________________________________________________________


  3. Will your estate have sufficient liquid assets to pay your estate settlement bill?

    _____________________________________________________________________________________________


  4. What percentage of your estate is represented by your business interest?     %_______________


  5. Is there a need to provide additional working capital during the transition period?

    _____________________________________________________________________________________________


  6. What plans do you have to continue an income to surviving dependents not active in the business?

    _____________________________________________________________________________________________


  7. Is there a need to equalize inheritances among surviving family members?

    _________________________________________________________________________________

      C. Objective: Sell the Business

  1. To whom will your business interest be sold?

    Name

    Age

    Relationship

    Currently Active?
    (Y or N)

    % of Your
    Business Interest

           

    %

           

    %

           

    %

           

    %

           

    %



  2. Do you have a written Buy-Sell Plan ____________________________________________________________________


  3. If YES:
    1. What type is it? (check one)   ___Cross Purchase ___ Entity Purchase


    2. When was it implemented? _______________________ Last reviewed? ________________


    3. How will the plan work in the event of:

      Death:  __________________________________________________________________________________

      Disability:  ________________________________________________________________________________

      Retirement:  ______________________________________________________________________________


    4. How is the purchase price determined? ________________________________________________________

      ________________________________________________________________________________________


    5. Is your Buy-Sell Plan funded? ________________________________________________________________

      If so, how? _______________________________________________________________________________

      If not, where will the funds come from to complete the purchase?

      _________________________________________________________________________________________


    6. Does your plan still adequately reflect the needs of your business and its owner(s)?

      _________________________________________________________________________________________

    D. Objective: Liquidate the Business

    1. What do you think the liquidation value of your business would be today?    $ ________________________

    2. How does this liquidation value compare to the value of your business as a going concern?

      __________________________________________________________________________________________

    3. Will your estate have sufficient liquid assets to pay your estate settlement bill?

      __________________________________________________________________________________________

    4. What plans have you made to continue an income to yourself or your family in the event of your death, disability or retirement?

      __________________________________________________________________________________________

      __________________________________________________________________________________________

     


    Workbook provided by:
    Jerry Vanderzanden, CLU, ChFC
    Coastal Financial Partners Group, LLC
    1888 Century Park East, Suite 1625, Los Angeles, CA 90067
    Bay Area Office: (925) 997-2277; LA Office: (310) 788-3805


     


    Disclosure Information VSA, LP All rights reserved. LG-04 Ed. 01-12
    The information, general principles and conclusions presented in this report are subject to local, state and federal laws and regulations, court cases and any revisions of same. While every care has been taken in the preparation of this report, neither VSA, L.P. nor The National Underwriter Company is engaged in providing legal, accounting, financial or other professional services. This report should not be used as a substitute for the professional advice of an attorney, accountant, or other qualified professional.


    U.S. Treasury Circular 230 may require us to advise you that "any tax information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent tax advisor."

     

View Scott Valley Bank - The Vault - June 2012