Thinking About Death
I’ve been thinking a bit about the journey toward death as one does. I know it’s morbid and something none of us wants to think about, but many family business owners don’t think about it—let alone plan for it—before it’s too late.
A colleague’s friend recently and unexpectedly lost his brother and business partner in their grandfather’s business. He was only 53. As business partners, they hadn’t prepared anything. They thought they had a good 40 years left. Which left his family scrambling to just get into his computer, let alone provide for his wife and their children.
How to Prepare for the Unexpected
He shared some tips with my colleague that would have helped them deal with this unexpected situation:
- Use a password manager and make sure someone in the business has access to it. They’ll need access to your cell phone, too, so they can authenticate the login.
- Get disability insurance if you don’t have it—and provide it for your family and your employees too. This ensures that your family is taken care of if you become incapacitated, especially if you never return to work.
- Make sure that someone has medical and financial power of attorney. A will has no power until you die. You need power for both assigned to someone else so that a partner or family members can make decisions for you if you become incapacitated.
- Put how you feel about a DNR (do not resuscitate) in writing. If it’s not in writing, people will debate what they think you want and make selfish decisions.
- If you are married, ensure your spouse knows which bills you pay. If you’re not married, make sure someone in the business can handle that for you.
- Have a list of medications and your medical history handy so anyone can find it—including the EMTs. You can keep this on your phone, which anyone can access in an emergency. If you have an iPhone, you can create a medical ID in the health app. On an Android phone, you can add it in the “emergency information” setting. Learn more about how to do that here.
These are great tips for anyone, but they are the tip of the iceberg in a family business. You also have to think about succession planning, a legacy roadmap, estate planning, and more.
Don’t let your business or your family suffer because it’s a topic you’d rather avoid. Start planning for the unexpected now and leave everyone in the best possible situation to enjoy your wisdom for generations to come.
Recommended Reading
- Death and the Family Business
- What Happens After the Death of a Family Business Member?
- How to Prepare Your Family Business for the Unexpected
Further Reading at Family Wealth Library
- Create a Legacy Road Map for Your Loved Ones After Your Death
- The Pain In Waiting to Craft the Family Business Estate Tax Plan
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