By Brad MacLiver
Authorship and profile at Google
Given the current market conditions, many WY pharmacy owners are experiencing reduced profit margins and are considering to sell. For a number of years, aWyoming
Estate Planning is a topic many people, in all industries, shy away from. For the pharmacy owner who works 6 days a week, takes very few vacations, fills scripts all day, then mops the floor and does the books at night, there usually isn’t much time to consider additional things such as estate planning. However, knowing that there will eventually be a transfer of the business, it is important for theWyoming
Developing a plan to transfer the business will be time consuming, but done correctly will allow the business to be successfully transferred in an acceptable manner. An estate plan for a pharmacy owner inWyoming
Estate planning allows a pharmacy owner inWyoming
The process may involve Trusts, Wills, Living Wills, Power of Attorney, Medical Power of Attorney, Business Valuations, Life Insurance, Charitable Remainder Trusts, Buy-Sell Agreements, and other legal documents. All of the different aspects of the estate planning are to provide the pharmacy owners coordinated directives.
When there are non-family members as partners in the drug store business, it is essential that the estate planning incorporate a Buy-Sell Agreement. A buy-sell agreement, governs the transfer of the business between pharmacy partners. The agreement may also be known as a partner buyout agreement, or a business will. To help protect the family in the event of a partner’s death, the buy-sell agreement may be funded with a life insurance policy.
Estate planning, buy-sell agreements, and the transfer of Wyoming pharmacies should incorporate a pharmacy business valuation executed by a third party that has expertise in the pharmacy industry, performs a large amount of pharmacy business valuations every year, and has current industry data as a solid foundation for their conclusions. Applying simple accounting formulas or multipliers or using valuators inexperienced in pharmacy will not provide an accurate business valuation.
Pharmacy owners typically spend a major part of their life building the business. Their efforts should not be in vain because they refuses to accept their mortality and plan accordingly. The only pharmacist in some small pharmacies is often the owner. If their scripts cannot be filled by a licensed pharmacist then the customer files must be transferred to another pharmacy according to law. A pharmacy’s business value potentially drops to a negligible figure in just a few days after the passing of the owner because of this. The contingencies outlined in an estate plan should address this issue. Unfortunately due to not having an effective plan in place, each year a number of WY pharmacy owners die and their family is left with an asset with very little value.
Tips:
1. When the family drug store is the sole means of income for several family members it becomes even more crucial to have a succession plan in place.
2. To avoid disputes, estate plans should be developed with clear directives.
3. A major objective for most completing an estate plan is to reduce tax liabilities as much as possible. Expert tax advice should be sought.
4. There are many online sites and books available to provide advice and documents when developing an estate plan. It is advisable to have a paid expert review the completed documentation when going the self-help route to ensure that it can be legally complied with when the time comes.
5. It is essential to talk with children and other family members of the pharmacy owner in WY while developing the estate plan, especially if there are some family who work in the business while others don’t.
Authorship and profile at Google
Given the current market conditions, many WY pharmacy owners are experiencing reduced profit margins and are considering to sell. For a number of years, a
Estate Planning is a topic many people, in all industries, shy away from. For the pharmacy owner who works 6 days a week, takes very few vacations, fills scripts all day, then mops the floor and does the books at night, there usually isn’t much time to consider additional things such as estate planning. However, knowing that there will eventually be a transfer of the business, it is important for the
Developing a plan to transfer the business will be time consuming, but done correctly will allow the business to be successfully transferred in an acceptable manner. An estate plan for a pharmacy owner in
Estate planning allows a pharmacy owner in
The process may involve Trusts, Wills, Living Wills, Power of Attorney, Medical Power of Attorney, Business Valuations, Life Insurance, Charitable Remainder Trusts, Buy-Sell Agreements, and other legal documents. All of the different aspects of the estate planning are to provide the pharmacy owners coordinated directives.
When there are non-family members as partners in the drug store business, it is essential that the estate planning incorporate a Buy-Sell Agreement. A buy-sell agreement, governs the transfer of the business between pharmacy partners. The agreement may also be known as a partner buyout agreement, or a business will. To help protect the family in the event of a partner’s death, the buy-sell agreement may be funded with a life insurance policy.
Estate planning, buy-sell agreements, and the transfer of Wyoming pharmacies should incorporate a pharmacy business valuation executed by a third party that has expertise in the pharmacy industry, performs a large amount of pharmacy business valuations every year, and has current industry data as a solid foundation for their conclusions. Applying simple accounting formulas or multipliers or using valuators inexperienced in pharmacy will not provide an accurate business valuation.
Pharmacy owners typically spend a major part of their life building the business. Their efforts should not be in vain because they refuses to accept their mortality and plan accordingly. The only pharmacist in some small pharmacies is often the owner. If their scripts cannot be filled by a licensed pharmacist then the customer files must be transferred to another pharmacy according to law. A pharmacy’s business value potentially drops to a negligible figure in just a few days after the passing of the owner because of this. The contingencies outlined in an estate plan should address this issue. Unfortunately due to not having an effective plan in place, each year a number of WY pharmacy owners die and their family is left with an asset with very little value.
Tips:
1. When the family drug store is the sole means of income for several family members it becomes even more crucial to have a succession plan in place.
2. To avoid disputes, estate plans should be developed with clear directives.
3. A major objective for most completing an estate plan is to reduce tax liabilities as much as possible. Expert tax advice should be sought.
4. There are many online sites and books available to provide advice and documents when developing an estate plan. It is advisable to have a paid expert review the completed documentation when going the self-help route to ensure that it can be legally complied with when the time comes.
5. It is essential to talk with children and other family members of the pharmacy owner in WY while developing the estate plan, especially if there are some family who work in the business while others don’t.
