5. Put it in writing. You may have a handshake agreement with a fellow advisor to look out for each other in case of emergency, but it is critical to also commit this plan to writing. A continuity plan should outline who will take on which responsibilities if you’re unavailable. This shouldn’t supersede anything in an operating or partnership agreement, but it should be a formal document that lives with your firm’s internal policies and procedures.
6. Regularly conduct and update firm valuation and any insurance policies. If, like many firms, you have insurance policies in place to buy out a partner who becomes incapacitated, you should reevaluate the firm’s value on a regular basis. This will ensure your insurance policies can cover any valuation changes in partner shares.
None of us likes to imagine all of life’s potential “what-if” situations. But when you’re in the business of helping others prepare for their future, you should do your best to prepare for your own.
Jylanne Dunne is senior vice president of practice management and consulting at Fidelity Clearing & Custody Solutions in Boston.