But what if one of them dies?

But what if one of them dies?

Do you want to have as a future partner your ex business partner’s spouse’s solicitor?

Does your business have a ‘business’ will?

The chance of death, total and permanent disability (TPD) or critical illness (CI) among business partners is surprisingly high.


The chance of any individual business partner or key person dying, becoming totally and permanently disabled or suffering a critical illness before age 65 is
Eg 1 Yourself Male 40 Partner male 45
35% 33%
The chance that one of you will die, become totally and permanently disabled or suffering a critical illness before age 65 is 57%.


EG 2
The chance of any individual business partner or key person dying, becoming totally and permanently disabled or suffering a critical illness before age 65 is
Yourself Male 40 Partner male 45 Partner male 50
35% 33% 30%
The chance that one of you will die, become totally and permanently disabled or suffering a critical illness before age 65 is 70%.

No doubt you have insured your Car, Home & Contents.
Why not insure your most valuable asset.....you and your business partners!

Where does the $ = money come from?

The problem

While the business owners are alive, they can at least negotiate a buy-out amongst themselves, for example on an owner's retirement. But what if one of them dies?

The remaining owners must now negotiate with the deceased owner's legal personal representative, who may well be more concerned about the needs of the estate rather than the needs of the business.

Many business owners mistakenly believe that this contingency has been catered for in the business' constitutional documentation. Often there is no buy-out provision; or if there is, it's usually ineffectually drawn up and inadequately funded.

Where does the money come from?

What are the alternatives?
Do you remortgage the house?
do you sell the business?
Can you borrow the funds?
Will the bank lend to you?
Do you want another business partner?
How do you pay out the heirs?

Ownership Protection (Business Succession)

Ownership Protection helps the smooth succession of the business from one owner to another and provides security for employees through the continuity of employment.
People don't plan to fail, but they typically fail to plan.

This age-old truth has particular relevance to owners other than husband and wife business co-owners, where the death of an owner can result in the end of an otherwise viable business simply because of the lack of business succession planning.

The solution

Ownership Protection can provide the continuing owners, or their nominee, with sufficient cash for the transfer of the outgoing owner's equity to the continuing owners, if a business owner dies, is disabled or suffers a critical illness.

To find out more about Ownership Protection (Business Succession), get in touch with your financial adviser John McAuliffe on 07 3848 1088