Even with large number of  acquisitions over the last 15 years by companies like Marsh, AON, USI, Willis, etc., many of us in the insurance sector are still involved with privately held agencies.  These entities all have different shapes and sizes: some are single family owned, some are  partnerships with non related individuals, some are large and some quite small.  Whatever the size or shape of the organization, thoughtful succession planning is critical.   Are adult children of the owner or owners currently involved in the business, or intend to be involved in the business needs to be addressed?  Is there intent on having business perpetuate, or is there a plan to sell with proceeds going to owner’s estate? There are so many different variables and potential arrangement that each organization has to take the time and with the assistance of  both legal and tax advisors craft a plan that addresses these issues.  For instance  Death is not the only trigger, but a prolonged disability or incapacitation are also factors to consider.  I have attached an interesting Article recently published in Inc.  The article addresses things to consider when addressing succession planning for a family business.

The intent of this post and article is to hopefully get you thinking about this issue if you have not done so to date.  I welcome any feedback on this issue both real or anecdotal.

Action is the foundational key to all success, Pablo Picasso

George Bode

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