​Are you a small-business owner? Do you have a succession plan? If the answer is no, you’re not alone. A recent study from Nationwide found that 60 percent of small-business owners don’t have a succession plan. Among those without one, nearly half said they don’t have a plan because they believe such a plan isn’t necessary.1
 
While a succession plan may not seem necessary, the truth is that you could be exposing your business, employees and family to significant risk if you don’t have one. A business succession plan is a document that creates an orderly transition between you and the next owner.

A succession plan protects your business, employees and family. It also helps you realize maximum value for your business and even retain some form of control or financial involvement. The plan can help you identify the right successor and transition the business without disrupting operations or cash flow.

​Thinking about gifting assets to a loved one? A financial gift can be a great way to make a difference in a loved one’s life. It can also be an effective estate planning strategy, as gifting allows you to transfer assets to your friends and family before you pass away. That could reduce the amount of assets that face probate and the estate tax.
 
Gifting doesn’t come without its own set of risks, though. There’s actually a thing known as a gift tax. Depending on the size of your gift, you could face a tax of up to 40 percent of the gifted amount.1 If you fail to pay the tax, the recipient may face additional tax obligations.