This form of Life Insurance provides coverage for a specified period of time, referred to as the term. Term Insurance has often been called temporary Insurance because there is no cash value accumulation, only the death benefit protection. This Life...
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Funding Your Buy-Sell In the Event Of a Premature Death
Several issues come into focus when we address funding a Buy-Sell in the event of a premature death. They revolve around time, taxes, and cost effectiveness. As was mentioned earlier, a majority of Buy-Sell agreements are activated due to premature...
Short Review of Funding Buy-Sell Agrements
We're just about in the middle of all the types of funding your Buy-Sell Plans. So before we get to the heart of the next sgment of funding the Buy-Sell, I thought it would wise to offer a brief summary. This...
Private Annuities Revisited
The last few reports have dealt with the financing of your Buy-Sell Agreements, the heart of your Business Succession planning. We last discussed the use of a Private Annuity which is the sale of a business by the parent to usually...
Private Annuity To Fund a Buy-Sell
A Private Annuity presents some similar characteristics to the Installment Method previously described. However, before we proceed a word of CAUTION is advised. This Private Annuity is NOT to be confused with a commercial annuity purchased from an Insurance company. ...
Cash Option In Funding Buy-Sell
Previously we discussed the components in using cash to help fund your Buy-Sell Plan. We first spoke about establishing a SINKING FUND which accumulates a cash account over a period of time. Then we discussed using a LUMP SUM balance. If neither...
Funding Your Buy-Sell: First Option
Keep in mind that to complete your Business Succession Buy-Sell Plan, funds must be available to buy the interests of an owner's business. In the previous chapter we listed the various means to accomplish this. Let's now examine one at a time. ...
Funding the Buy-Sell Arrangement
At the very beginning of this blog, I said there are three levels of a Business Succession plan. The first and basic level is to have a good idea of how you would like to transfer, pass on your interest...
A Quick Summary Of The Buy-Sell Plans
While we just finished the sixth and last of the different Buy-Sell agreements, a brief summary should be in order to tie things up before we progress. First of all let's review the TRIGGERING EVENTS. Then we'll give a very...
Section 303, Stock Redemption Buy-Sell
This is a very specific form of a Buy-Sell Agreement, a PARTIAL STOCK REDEMPTION. It is worth mentioning as it can save thousands if not millions in tax dollars. However, be careful in that it can be used ONLY IN C...