Business Planning

Estate Equalization

Provide liquidity so the estate can be portioned equally (or as you designate) to each inheritor.

Prevent Conflicts

No Hard Feelings.

In some cases, passing a family business to the next generation can create costly conflicts.

For example, active business inheritors will likely have differing opinions from non-active inheritors about issues such as salaries, dividends, and asset purchases. And if you leave the business entirely to certain heirs, others may feel the need to litigate to ensure an equal portion of the inheritance.

There is a simple solution (read on).

One Step Ahead.

This can save the family from a lot of heartache, stress, and confusion: set up a life insurance death benefit that can provide the liquidity needed to provide each heir with their inheritance.

The cash value grows on a tax-deferred basis, and withdrawals or loans from the policy are not taxed (when structured properly). The death benefit is not subject to income or estate taxes, in some cases providing a better return than other taxable investments.

You may be able to tap into income or stock from the family business to pay insurance premiums. There are ways to finance insurance premiums as well.

Armed with a plan, you can preserve the family's business, relationships, and legacy.