A catastrophic plan protects your business and beneficiaries in the event of your death or disability. The Commitment Agreement, which serves as your catastrophic plan, meets all of the required regulations to inform Raymond James of your preferences for a successor as well as your preferred payment options.

An actionable catastrophic plan on Practice Exchange needs two things:

1. A named successor: your plan requires a catastrophic planning successor who will take over your business in the event of your death or disability.

2. A signed Commitment Agreement: this will allow Raymond James to know your chosen beneficiaries and enables the firm to pay them directly. Additionally, a Commitment Agreement protects you under FINRA Rule 2040(b), which states that if there’s no contract between you and your firm outlining your preferred payment structure, the firm can only make a discounted lump sum payment – subject to probate with unfavorable tax implications – to an estate.