Spouse In The Loop

Is your spouse fully informed about family or business affairs?

One of the greatest threats to the survival of a business is a lack of proper planning and communication. Unexpected things can happen, so it is essential to be prepared. If an untimely event occurs, a spouse can be forced to make tough decisions at the worst possible time. With thoughtful, proactive planning and open communication, a business owner’s spouse can face the future with confidence.

Death	Disability
If death occurred, could you answer the following?	If disability occurred, could you answer the following?
How will this affect the business value?	Do you have powers of attorney to allow the spouse to make decisions if necessary?
Is there a buy-sell agreement?	Who would step in to run the business?
If not, will the survivor take over or sell?	Do you have adequate insurance coverage to replace lost income for your family and business?
How will you retain key employees and customers?	Would you know who to contact and what questions to ask?
Is any business debt personally guaranteed?
Is there life insurance to cover all liabilities?
Who owns the life insurance?

Make sure there is a plan if the unexpected occurs

Management Team – Determine who the decision maker(s) will be. A limited power of attorney can be given to a key manager or managers to make decisions
Potential Buyers – A buy/sell agreement or an employee stock ownership plan can ensure there is a buyer
Key Customers/Clients – Decide who, how and when this news will be communicated to reassure clients
Liquidity – Determine if there are sufficient reserves in the business or if life insurance is necessary to pay key vendors, creditors, taxes and payroll
Personal – Develop a plan to allow your family to continue receiving income, and make sure those resources and coverages are adequate

Know who to contact (complete the following)

BDF
Banker
Business/Estate Attorney
CPA
Life/ Disability Insurance Agent
Key Employee(s)