As a sole proprietor you can still protect the future value of your business without you
Whether you are self-employed and working on your own or the sole proprietor of a business that has employees, you can create a formal succession plan to retain the value in the business you have worked so hard to create. It may be a family member or a designated key employee you would like to see take over your business in the event of your death, disability or retirement. The lack of a formal plan can lead to confusion, heartache and, often, the business’ failure.
A one-way buy-sell agreement is a succession planning arrangement that identifies a party who agrees to buy the business in the event of the business owner’s death, disability or retirement. A properly drafted, funded and insured arrangement can make your wishes clear and pave the way for the continuation of your business.
Why let the value of the business be lost? The sole proprietor/owner can elect to purchase a life insurance policy where the proceeds go to the identified successor to purchase the business and thereby replacing the lost value to you and/or your family.