Everyone says it: “Prepare for the unexpected.” We all know that anything can happen at any moment that can change our lives forever. We all know we should take steps to prepare for these types of things, but life gets busy – like really busy. And we put things on the back burner for “another day”. But what if another day doesn’t happen?
It’s a morbid thought, so our human brains tend to avoid it and downplay the importance. However, we all know someone that passed away too soon, leaving behind more questions than answers.
This thought has come to the forefront for me recently, as a longtime friend and fellow CPA passed away very suddenly in September, leaving behind his CPA practice that only he held the keys to.
It’s also been a wake-up call for me as a business owner. If something were to happen to me, would anyone know how to carry on the daily tasks of my business? Would anyone know my wishes for the business after I’m gone? As a “one-woman show”, many of these procedures and wishes are in my head, but not written down. I have vowed to change that, and I hope you will consider these steps so that you can prepare for the unexpected, too.
Get a Life Insurance Policy
If you earn an income that someone else relies on, please, please, please get a life insurance policy. Read that again. A ‘Go Fund Me’ is not an insurance policy and it’s a terrible way to provide for your family if the unexpected happens. Make sure your loved ones are going to be taken care of financially, so they are not having to deal with financial stress in addition to processing their grief.
Seek Legal Guidance
You should seek legal guidance and have a Will that dictates what your wishes are. If your situation is more complicated, you may benefit from setting up a Trust. I’m not an attorney and thus cannot provide advice as such, but I encourage you to book a consultation with an Estate Planning Attorney to ensure you put the right solution in place for your situation. Probate is a long, expensive process that can be avoided if you are proactive and have the necessary legal tools in place.
Create Documentation
If you own a business, it’s very important to have procedures and other important information documented, in case someone needs to take over the business unexpectedly. Save this information in a secure, safe place and let someone know where to locate it if needed. Draft a succession plan that outlines who, how and when your business will pass to another person or company when you retire, are disabled, or pass away. You also want to have solid financial statements and tax returns accessible in the event that your wishes are to have your business sold if you are no longer able to operate it. You may even want to draft a buy-sell agreement that outlines what should be done in case you unexpectedly pass away.
I hope you take these thoughts to heart and make time to get the necessary things in place to prepare for the unexpected. Consider it a final gift to your family – peace of mind, financial stability, and comfort during what will surely be a very difficult time.
You’ve got this.
