Financial Guidance

Planning Your Business Succession

Transitioning as ownership changes

A smooth transition in ownership is essential for the health of a business. If your business partners or shareholders die, will you be able to do business with their heirs? If you die, is your family ready to work with your business partner? These business continuation options can help you prepare for the challenges that come with changes in ownership. They also establish the value of your business and assure a ready market for your share should you die.

Cross Purchase Buy-Sell

Create a buy-sell agreement between owners of the company – with the life insurance cross-owned by the business owners. Upon death, the surviving owners use the death benefit proceeds to purchase the deceased owner’s shares.

Entity Redemption Buy-Sell

Create a buy-sell agreement between the company and the owners – with the life insurance owned by the business. Upon death, the company uses the death benefit proceeds to purchase the deceased owner’s shares.

LifeCycle Buy-Sell

Facilitate the transfer of ownership and combine the advantages of both Entity Redemption and Cross Purchase without transfer for value problems. This concept combines funding with living buyout or retirement accumulations – making it a flexible and efficient ownership transfer vehicle.

Cross-Endorsed Buy-Sell

Get the benefits of a Cross Purchase Buy-Sell while retaining ownership of your insurance policy. The policy’s death benefit is endorsed to the other business owners and fulfills the requirements of the buy-sell arrangement.

Key Employee Life Insurance

Provide the funds needed to keep your business running smoothly following the death of a key employee. You can make up for considerable lost time and money while trying to find and train a replacement.

Personal Estate Planning

Incorporate your business into a total estate plan, helping preserve the value of your business while minimizing estate taxes. Because much of your wealth is probably tied to your business, you need a strategy to avoid liquidity problems for your heirs after you are gone.