1. Establishing a Secure Financial Plan That Works for You
Welcome!
This workshop is designed to help you take a moment to think about who and what things in life are most important to you – the people and things so important that you want to make sure they are taken care of even after you’re gone.
Managing the “What-If’s” — For Women Business Owners
Establishing a Secure Financial Plan That Works for You
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2. The Big “What-If” for Business Owners
What if you were to become disabled or die unexpectedly?
Who would take over the business?
Would your family be provided for?
Who would manage your financial affairs if you were unable to?
Welcome!
As a personal risk manager, I [we] often have to share some uncomfortable facts and statistics with people. And today is no exception. But thinking clearly about the risks – or “what-ifs” – you face as a business owner is often the first step to getting on a positive path to risk-proofing your business. And that’s the good news.
But let’s start with some challenging questions for you as a business owner:
What if you were to become disabled or die unexpectedly?
Who would take over the business?
Would your family be provided for?
Who would manage your financial affairs if you were unable to?

3. The Importance of Business Succession Planning
Have you sufficiently protected your business? Your family?
In a recent survey, only slightly more than one-fourth of all women business owners said that they have a formal business succession plan in place.
This is somewhat surprising considering 59% said they planned to name a family member as a successor. Regardless of whom you plan to pass the business to, you need to have meaningful conversations with the intended successor and then have legal documents drafted and a funding mechanism put into place.*
For business owners, so much time and effort is put into developing a successful business, that protecting the value of that business is sometimes overlooked.
Today, we are going to look at several strategies to help you address critical issues that every business owner faces.
* source: MassMutual, State of the American Family
Source:

4. Strategy #1: Utilizing an Estate Plan
Transfer control of your biggest asset
Assure future appreciation to successive generation
Retain assets for retirement
Minimize estate taxes
Provide liquidity for estate
Assure smooth and fair disposition of assets
An Estate Plan can be an efficient method of addressing many of the “what ifs” for a business owner. Most of all, it can help make sure the transfer of your largest asset – your business – is handled properly.
While the overall family goal is to provide the maximum amount of assets for the next generation, it has to be balanced with the need to make sure the business is viable after the transfer.
A sound business continuation strategy designed into an estate plan will allow the business owner to retain some assets for retirement while shifting future appreciation to the next generation so that the estate of the business owner is reduced.
An estate plan will also provide liquidity and equitable disposition of assets among all family members.
The single largest obstacle to achieving this is procrastination. Typically, as a business owner, you are consumed with running the business and don’t have the time or desire to consider what would happen to the business if you were to die. But without proper planning, you will not be able to achieve your goals.
Let’s dig a little deeper and look at specific business transfer issues that are unique to you as a business owner:

5. Estate Planning Issues: Unique to the Business
Business Valuation
How the business is valued
For lifetime transfer
For transfer at death
Business Succession
Transfer to family
Transfer outside of family
The foremost question in the business owner’s mind is usually, “How is my business going to be valued?” The answer is, “It depends.”
If the business is transferred during the lifetime of the business owner, the business may be valued very differently than if the business is transferred at death. The valuation is based on the concept of fair market value. What would a willing buyer pay a willing seller for this business? What if only part of the business were sold? Who would buy the business?
A second important question to be asked is to whom will the business be transferred to? A family member or outsider?
The probability of a business continuing on into a second generation is only about 30% and the probability of a business continuing into the third generation is only about 12%. *
On the other hand, will an outside buyer manage the business the same way you have?
These issues require some careful thinking and planning to make the business succession plan work for you and your family.
*Source: Family Business Institute ( Succession Planning 2018)

6. Estate Planning Tools for Business Transfer
Tools for lifetime transfers
Family limited partnership
Grantor retained trust
Sale/gift
Tools for transfers at death
Buy-Sell agreement
Once you determine how and when you want to transfer or dispose of the business, there are some estate planning tools to help you maximize the value and minimize the cost of the transfer.
Lifetime transfer – There are several common estate planning tools for transfer of the business interest while the business owner is alive, including a family limited partnership, a grantor retained trust and a sale/gift. Transfers at death – The most common estate planning tool for a transfer upon the business owner’s death is a buy-sell agreement.
Now that we’ve outlined the most important issues facing you, let’s talk briefly about some others.

7. The Next Big “What-If” for Business Owners
What if I don’t have enough money for my retirement?
How can you increase your contributions?
How can you and your spouse be protected from outliving your retirement income?

8. Strategy #2: Retirement Income Planning
Maximize contributions to a company-sponsored qualified plan
Non-qualified deferred compensation plan: for supplemental retirement income
Non-qualified salary continuation plan: pre-retirement death benefits or additional retirement income

9. Non-Qualified Deferred Compensation Plan
Agreement
This illustrates how a nonqualified deferred compensation plan can allow a company to help certain highly compensated key employees defer income and the income taxes due on that income until a later date – usually in retirement. It can also provide income to beneficiaries should the employee die prematurely.
The company and employee agree to defer a portion of income in return for future compensation, usually in the form of retirement or death benefits. At retirement, termination of employment, or death, the employee or named beneficiary receives the benefit as described in the agreement as compensation income from the company and, as such, may be tax-deductible to the company at that time.

10. Strategy #3: Current Income Protection
Executive Bonus Plan — additional life insurance and supplemental retirement income
Long-term care insurance
Supplemental health insurance
Disability and accident insurance

11. Executive Bonus Plan
This diagram illustrates the way an Executive Bonus plan can offer a way for employers to provide the additional benefit of life insurance for selected key employees. The employee usually applies for and owns the policy, naming his or her family as the beneficiary. The employer pays the premiums directly to the life insurance company. This is treated as compensation for income tax purposes because the employee is the owner of the policy. Since the premium is additional compensation to the employee, it may be tax-deductible to the business provided it qualifies as reasonable compensation. The employee reports the premium as compensation and is responsible for taxes. As an option, business owners may choose to provide an additional cash bonus amount sufficient to pay the tax increase.

12. Allstate Benefits Create a Customized Benefit Package
Allstate Benefits can help you create a custom benefits package for your employees, including:
Life, disability and accident insurance
Long term care and supplemental health insurance
Employer-sponsored savings plan

13. Protecting You From The Lunchroom to the Boardroom
The Good Hands® Solution can provide a three-pronged approach to meet all of your business needs
Needs of the Owner
Allstate
Financial Services
Voluntary Benefits
Business Insurance
Property & Casualty
Needs of the Business
We’ve talked about a few not-so pleasant “what-ifs” today – what if we talked about some good news?
What if… Allstate Could Protect You and Your Business From The Lunchroom to the Boardroom?
Allstate can provide a three-pronged approach to help meet the core areas of need:
For you - the owner
For the business
For your employees
We are your “one-stop” protection resource – from financial services, voluntary benefits, business insurance, to property & casualty.
Needs of the Employees

14. Business Planning Allstate’s 3-Pronged Business Protection
Business Succession Planning
Retirement Planning
401(k) Plans
Executive Disability Insurance
Long Term Care
Employee Life Insurance
Disability Income Protection
Health Insurance Products
Critical Illness
Accident
Cancer
Employer/Employee Savings through Sect.125
Business Auto
Business Owner’s Policy (BOP)
Commercial Package Policy (CPP)
Inland Marine Policy
Business Umbrella/Excess Policy
Professional Liability* for certain businesses
Worker’s Compensation [
FOR YOU (THE BUSINESS OWNER): FINANCIAL PRODUCTS AND PLANNING … FROM ALLSTATE FINANCIAL
Business Succession Planning
Estate Planning
Retirement Planning
Executive DI
Long Term Care
FOR YOUR BUSINESS: PROPERTY & CASUALTY INSURANCE … FROM ALLSTATE BUSINESS INSURANCE
Physical Assets:
Commercial Automobile
Commercial Property
Business Liability:
General Liability Umbrella
Business Package Policy
Professional Liability
Worker’s Compensation
FOR YOUR EMPLOYEES: VOLUNTARY SUPPLEMENTAL BENEFITS … FROM ALLSTATE BENEFITS
Employer/Employee Savings – Section 125
Employee Life Insurance
Disability Income Protection
Health Products – Critical illness, accident and cancer insurance

15. Put Your Business in Good Hands® with Allstate
Allstate provides the most comprehensive business planning resources in the industry:
We can help you ask the right questions
Provide tools to assess & prioritize needs
Offer a range of funding vehicles
Tailor a solution to manage the “what-if’s” in your business

16. Helping to Protect Your Most Valuable Asset
Next Steps
Determine which area is your greatest need: business, personal or employees
Make an appointment to begin the assessment process
Let’s Talk — Put Allstate’s resources to work for your business… don’t wait any longer!

17. Thank You for Coming! Business Planning Thank you for coming.
Please note that Allstate Life Insurance Company or its agents and representatives cannot give legal or tax advice. Tax laws and regulations are complex and subject to change. Customers should consult an attorney or tax advisor for complete details. Life insurance offered through Allstate Life Ins. Co. & Allstate Assurance Co., 3075 Sanders Rd, Northbrook IL 60062; American Heritage Life Ins. Co., 1776 American Heritage Life Dr., Jacksonville FL In New York, life insurance offered through Allstate Life Insurance Company of New York, Hauppauge NY. ©2016 Allstate Insurance Company accessallstate.com
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