When one of the owners is suddenly deceased, the success
of the business continuing and growing is jeopardized when
no Written Agreement has been drafted to meet the needs
of all the parties involved.
These interests are many and may be competing interests
between the heirs and the surviving owners.
| Heirs
of Deceased Owner
Want |
Surviving
Owners Want: |
Top dollar for their interests
Prompt settlement of the
estate
Set
value of business for estate tax purposes
Relief for family regarding
business creditors
No business paperwork or reporting |
Minimum cost for the
interest
Prompt transfer of the business interest
Full control of the business without interference
Continuing line(s) of credit
Retention
of customers and employees
|
Potential Problems Without a Written Agreement:
Heated conflicts among the remaining owners and the decedent's
family
Unhappiness on all sides and sometimes litigation
Delays in settling the estate and continuing the business
growth
Loss of customers and/or employees
Forced liquidation of the business which will bring less than
full value
Forced Bankruptcy
Damaged credit
Collection difficulties
and so many others...
The Solution: A Written Agreement
Taking the time now to see that the business will pass in
an orderly manner at the time of death will benefit all parties
and their heirs.
A Written Agreement can provide.
An orderly transfer of the business
A mutually agreeable sales price
Mutually agreeable terms of sale
A value that is binding on the IRS for federal estate tax
purposes
Stability for customers, staff, creditors and investors
An Agreement which is favorable to all parties can be more
easily drafted prior to a crisis.
At The Clark Company, we will help protect the assets, minimize
the tax consequences and draft a Written Agreement that can
render the highest return for the heirs, surviving business
owners and/or investors. The time to place these safeguards
in order is now, don't wait until you have a crisis on your
hands. |
