"Only three things can happen to a small or closely held business at the owner's death, disability, or retirement. It can be liquidated, sold, or continued. But, without careful planning in advance, what you wish to happen to your business may not actually happen. In effect, for a businessowner — especially in a family-owned company — failing to plan to continue or otherwise dispose of the business is the equivalent of not having a will. In other words, it's an accident waiting to happen."

Trigger questions

"What are you going to do about your business when you're not running it any longer?"

In a family-owned business:

"Is continuing the business in your family one of your objectives?"

Buy-sell agreements:

"Are you anxious to go into business with your partner's spouse or their children?"

"Is your business for sale? Would it be for sale if you or one of the other owners had died or become disabled last night?"

"If I offered to buy your business, and you were interested, what price would you ask for it — and is there anyone else I'd have to buy out?"

"Can you be certain that your co-owners or their heirs will sell their shares of the business to you in the event of death or disability?"

"You and your co-owners have a buy-sell agreement. But where will the cash come from to buy each other's share of the business?"

"I'm sure you could write a check for $750,000 today without breaking your business. But wouldn't it bend it a little more than you'd like?"

"Yes, you have a buy-sell agreement, but you could look at dozens of buy-sell agreements that will never do what they're intended to do. Would you like a second opinion on yours?"

Section 303

Partial stock redemptions:

"Does the value of your business represent a substantial part of your estate?"

"If you had died last night, would your family have to sell the business to pay your estate settlement costs? Would you want to avoid that?"