![]() It also affords the co-owners or the business entity the ability to maintain the option to purchase the interest from an existing owner in order to restrict outsiders or undesirable business partners from becoming owners. A well thought out succession plan will benefit the departing owner, the business, its employees and the successor.Ī buy-sell agreement is part of a succession plan and allows a retired, disabled or deceased business owner to sell their share of the business. ![]() If you own a business do you have a succession plan?Ī business succession plan is a document outlining who will take over the business upon the owner’s retirement, death or disability. ![]() If you do have estate tax concerns, the proceeds of a life insurance policy owned by a trust will be distributed outside of your taxable estate. It will also distribute your assets privately. ![]() It can also be used to meet other future planning needs such as paying off debt, equalizing inheritances, covering education costs, retirement funding and passing assets to a charity.Ĭonsider owning your life insurance in a trustĪ life insurance policy owned by a trust will ensure the proceeds are distributed according to your wishes. Life insurance is traditionally used to provide a death benefit to heirs. It can be a powerful planning tool as it avoids probate, and can help minimize federal estate taxes.Ĭharitable trusts can be utilized to give back to a cause that is meaningful to you.ĭetermine how much life insurance you need and the right type of policy for you This type of trust has flexibility and can be changed or revoked at any time while the owner is alive. These accounts will avoid probate so it is important to elect beneficiaries and ensure they are up-to-date.Ī living trust or revocable trust permits assets owned by the trust to avoid probate when passing to heirs.
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