Ready for Succession

February 23, 2010 02:27 PM

Rank each according to importance and priority.

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Leadership Development
(1- low, 5-high)
_____ 1. To make the transition to new ownership/management transparent to our customers.
_____ 2. To help develop the skills /abilities necessary for leadership.
_____ 3. To enhance the leadership skills/abilities.
_____ 4. To increase management capabilities.
_____ 5. To maximize business value.
_____ 6. To continue receiving an income following transition.
_____ 7. To maximize returns of income, equity, and satisfaction.
_____ 8. To transition to new management in years.
_____ 9. To transition management control to:________________.
_____ 10. In case of premature death or disability, ______________ should continue to run the operation until _____________ is ready to assume the role.
_____ 11.Other: (please note)

Ownership Transition
_____ 1. To maintain family ownership of the farm/agribusiness.
_____ 2. To transfer ownership within years.
_____ 3. To ensure that loyal employees are offered an opportunity for continued employment and/or the opportunity of an ownership interest.
_____ 4. If a partnership, to acquire other interests if/when available.
_____ 5. To divide the operation into separate units to allow for multiple owners.
_____ 6. To minimize income tax due to ownership transition.
_____ 7. To receive fair market value for ownership interest, if sold.
_____ 8. To reduce exposure to business liabilities.
_____ 9. To transition with a minimum of gift or estate tax obligation.
_____ 10.Other: (please note)

Wealth Management (1-low, 5-high)
_____ 1. To learn good money management skills.
_____ 2. To develop an investment program.
_____ 3. To diversify financial resources outside of business.
_____ 4. To protect assets through contingency planning.
_____ 5. To provide support for a parent, disabled child, or any other person in the future.
_____ 6. To leave a meaningful legacy to a charitable organization.
_____ 7. Other: (please note)

Retirement Option Design
_____ 1. To accumulate an investment portfolio that I cannot outgrow.
_____ 2. To retire by/on .
_____ 3. To move on to the next venture in my vocational life by .
_____ 4. To provide an income of $ adjusted for inflation.
_____ 5. Other: (please note)

Efficient Estate Distribution
_____ 1. To maintain the family’s financial security.
_____ 2. To maintain the integrity of the farm / business operation.
_____ 3. To provide for the special needs of: .
_____ 4. To efficiently pass the assets of my estate.
_____ 5. To minimize estate tax and transfer obligations.
_____ 6. To contribute to charitable bequest.
_____ 7. Other: (please note)

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

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