As an advisor, one of the most important elements to protect you, your clients, and your business is to create a plan in case of your untimely death/disability/loss of license. It will ensure your clients are taken care of in your absence and your family receives the value of your business compliantly. As a result, the process of contingency planning and the creation of a viable contingency agreement are crucial steps to plan for the unexpected.
Only a small fraction of advisors, agents, and accountants have a plan and/or agreement in place to provide solutions should something happen to them unexpectedly – yet everyone should have one. There are several types of plans, some simple, some more complex, and a multitude of issues beyond the actual agreement to consider.
Our guide, “A How-To Guide for Protecting Your Business,” explains why a contingency plan is needed for every advisor and describes the most common types of contingency agreements, the benefits, and drawbacks of each, how value is determined and funding is secured, as well as strategies to get started.