It no longer is simply a matter of passing the agency to a family member. That family member has to be able to take over what today is a complex business that requires a variety of talents. It may very well be that more than one person is needed to do the job of running the agency. You need to get the family member ready to take over the agency. Financial concerns also dictate early consideration of perpetuation.
Stock needs to be transferred slowly over a period of time to avoid adverse tax consequences.
The effect on people Probably the most important effect of perpetuation planning is the positive impact it can have on the people at the agency. A plan or even an indication of a plan lets people know that the agency will continue on. When Pam Adams joined ISU Insurance Services of Colorado, Inc., it alleviated concerns about the agency being sold. There were concerns that it might be sold. Pam came on board and that made it clear the agency would not be sold.