Estate Planning and your AMSOIL Business - Frequently Asked Questions April 2009
An AMSOIL Dealership has value and is considered part of a Dealer’s estate. You have worked hard to build your AMSOIL business and you want to ensure someone continues to receive the maximum benefits and value for your efforts. Below are the most common questions Dealers or family members ask regarding estate planning or dealing with the business after a Dealer passes.
1. What happens to Dealers, PCs and accounts when a Dealer passes?
All personally sponsored Dealers, PCs, Catalog Customers and accounts will remain under the ZO number as long as it remains active. AMSOIL will not take any action to move these customers unless we are directed in writing to do so by the executor of the estate or the trustee of the Dealer’s trust; if no estate or trust exists then AMSOIL will work with the surviving spouse.
2. Should Dealers include their AMSOIL Dealership in estate planning?
Yes, AMSOIL Dealers should treat their AMSOIL business as an asset and include it in their will or estate. People who are qualified in drafting these documents can answer any questions you may have regarding the process.
3. Will AMSOIL continue to pay commissions to a Dealer’s estate after they pass?
Yes. AMSOIL will continue to pay earned commissions in the name and last provided address as long as the Dealership remains active. AMSOIL will not take any action unless we are directed in writing to do so by the executor of the estate or the trustee of the Dealer’s trust; if no estate or trust exists then AMSOIL will work with the surviving spouse.
4. Does a spouse need to be added to the Dealership for them to continue the business after the Dealer passes?
Not necessarily. If a married Dealer passes away and the spouse wants to maintain it, AMSOIL will allow them to do so. AMSOIL will need to receive documentation of the Dealers passing and written instruction to transfer the business into the name of the surviving spouse. Adding your spouse to the Dealership in advance of a death removes the need to take any action other than notifying AMSOIL.
5. Can I will my business to family members?
Yes. Your AMSOIL business is simply another asset in your estate and can be willed to any member of your family. Lifetime status will only remain if transferred to a spouse. All other inheritors will need to renew the Dealership and submit a completed Dealer application.
6. Can I will my business to a family member who is also an AMSOIL Dealer?
Yes. Your AMSOIL business is simply another asset in your estate and can be willed to any member of your family. Depending on the lines of sponsorship the Dealerships may need to be combined. Lifetime status will only remain if transferred to a spouse. All other inheritors will need to renew the Dealership.
7. Will someone from AMSOIL manage a Dealer’s accounts after they pass?
No. Dealers who are very involved in managing their accounts and personal group members should consider this issue when planning for their future, including any plans for retirement or restrictions due to age or health.
8. What happens to inventory of stocking Dealers after they pass?
Inventory is a business asset that needs to be carefully considered and managed in general. AMSOIL does not buy back Dealer inventories. The inventory can be included in any transfer or sale of the Dealership or sold to members of their Personal group or accounts in lieu of their placing orders. Old, discontinued non-saleable inventory should be disposed of properly.
9. What department in AMSOIL needs to be notified upon my death and what information do they need?
You can notify AMSOIL via a form by clicking on the “Wings of Passage” link on the Estate Planning page. AMSOIL requests a copy of the death certificate and written instructions (if any) on actions to be taken on the Dealership. For questions you can contact your Regional Sales Manager.
10. What does AMSOIL recommend I do with my AMSOIL business when planning my estate?
Your AMSOIL Dealership and inventory can be a high value asset in your estate. AMSOIL recommends that you advise those drafting your will or estate about this asset and communicate with any appropriate family members.
11. Should I contact a lawyer or CPA?
These are two very good resources when investigating a will or estate and you will have to determine what is most appropriate for your particular situation.
12. What do I do when my downline Dealer passes away?
You can help by notifying AMSOIL via the Dealer Zone and by sharing the information in this FAQ as well as the other information shared in the Dealer Zone with the surviving family members or executor of your Dealer’s estate.
Preparation is the key to ensure your business continues to thrive and that a seamless transition occurs to the person whom you designate. It also ensures your customers and personal group members continue to receive the service and support necessary to maintain their business. Once you have decided on a course of action and assignment of your business the next step is to educate and train that individual in AMSOIL policies and procedures as well as your established business practices. Investing up-front in this manner will help make the transition much easier and more successful for all involved and that the maximum value is achieved.