Life proves over and over that it is full of uncertainties.

Nobody knows if they will be met with an untimely demise (although most would argue all demises are untimely). But, it’s important to have the appropriate estate planning documents, addressing critical issues facing their survivors, in place just in case.

What does your buy-sell agreement look like?

Is that one document enough for a business owner? Estate planning has been greatly simplified over the years thanks to tax law changes. For many people, form or boilerplate documents will get the job done. Business owners, however, may need to dive deeper. Valuing and liquidating interest in a private, closely-held business involves challenging issues that may not be resolved by a standard form document. And, as much as terms applicable to relationships with key customers and suppliers evolve over time, aspects of the buy-sell arrangement need to be revisited from time to time. The best time to finalize an agreement of this sort is the day before it’s needed, but that’s rarely the case.

Some business owners will try to address the problem with life insurance. This certainly can play a role, and may be accompanied by a form document offered by the insurance agent. Or, corporate counsel may draft a document. Frequently, form documents neglect items of vital importance to the business. And, corporate counsel may have difficulty adequately representing multiple shareholders simultaneously. Have any new shareholders joined since the original buy-sell was prepared, and how has that been handled?

Working with Janney

Depending on your financial needs and personal preferences, you may opt to engage in a brokerage relationship, an advisory relationship or a combination of both. Each time you open an account, we will make recommendations on which type of relationship is in your best interest based on the information you provide when you complete or update your client profile.

When you engage in an advisory relationship, you will pay an asset-based fee which encompasses, among other things, a defined investment strategy, ongoing monitoring, and performance reporting. Your Financial Advisor will serve in a fiduciary capacity for your advisory accounts.

For more information about Janney, please see Janney’s Relationship Summary (Form CRS) on www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.

By establishing a relationship with us, we can build a tailored financial plan and make recommendations about solutions that are aligned with your best interest and unique needs, goals, and preferences. Contact us today to discuss how we can put a plan in place designed to help you reach your financial goals.

Disclaimer

Janney Montgomery Scott LLC, its affiliates, and its employees are not in the business of providing tax, regulatory, accounting, or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

About the author

Michael Repak

Vice President & Senior Estate Planner

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For more information about Janney, please see Janney’s Relationship Summary (Form CRS) on www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.

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