Potential Business Losses and Problems
What losses might your business experience with the untimely death of a key employee or a business owner who is also a key employee?
Resulting business losses might include:
- Time and dollars needed to find, hire, and train a replacement.
- Reduced company productivity due to other employees being distracted.
- Lost business opportunities.
- Lost suppliers or customers.
Additional problems may be encountered if the key employee was also an owner.
These problems might include:
- Disagreement between heirs and surviving business owners or key employees.
- Lack of cash to buy the interest of the deceased owner, requiring a sale of the business to an unknown "outside third party."
- Surviving owners may be forced to work with someone who is either not competent or not motivated enough to make the business thrive.
- The business may have to be sold to pay estate taxes.
*Western & Southern Life does not give tax advice. Please contact your tax advisor for information that applies to your situation.