Executive Planning

Buy/Sell Agreements
Key-Person Insurance
Business Transfer Planning
Disability But-Out Plans
Family Business Succession
Inheritance considerations
Deferred Executive Comp.
Executive Long-Term Care
Wealth Accumulation
Executive Bonus Agreement

Buy/Sell Agreements

A Buy/Sell agreement defines how an owner's interest is to be distributed if he or she dies, or becomes permanently disabled. It helps ensure that a business or professional practice can continue after death or disability of one of the owners or partners. It does this by requiring each owner or partner to sell his or her interest to the remaining owners – or to the business entity itself – under terms defined in the agreement. It equally obligates the remaining owners or the business entity to purchase the deceased or disabled owners interest, and stipulates the formula by which the price will be determined. It is negotiated – in advance of the event – by a mutual agreement among the owners or partners.

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Key-Person Insurance

Key-Person Insurance is an arrangement where a business purchases life insurance on the life of a key employee to help the company survive financially if something happens to that key employee. The key- person policy can either be term insurance or permanent insurance, depending on the goal.

While the main purpose of Key- Person insurance is to provide a death benefit to the business in the event of the premature death of an essential employee, it can also be used as a way to provide the key person with supplemental non-qualified retirement benefits.

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Business Transfer Planning

Planning for the successful transfer of control and ownership of a business is one of the most difficult, lengthy, and rewarding tasks a business owner faces. Every business owner knows that building a successful company requires dedication, commitment and hard work. Once a company is established, business succession or business continuation planning becomes an essential part of the process to assure future continued growth.

A business succession plan involves selecting a new leader as well as carefully considering the financial and tax aspects of passing the torch and accomplishing it all with minimal disruption of the day-to-day business operation.

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Disability But-Out Plans

A disability buy-out insurance plan is designed to provide the funds needed to purchase a disabled owner or partner's interest in the business if they become disabled. Disability buy-out insurance should be made part of any business continuation plan or business succession plan as it will ensure that the disabled business owner receives a fair market value for his or her interest in the business. At the same time, it will protect all business owners from the threat that a disability may impose on the company by allowing them to buy-out the disabled owners interest at an agreed upon price set forth in a buy-sell agreement.

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Family Business Succession

Many family business owners must face tough questions:

Could the business survive if the owner became unable to work?
Will the business be held for the next generation or sold, either before or after the owner's death?
If more than one of the owner's children will own the company, who will have primary control?
If one or more children are not active in the business, how will their inheritance be affected?

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Inheritance considerations

An effective estate plan can help you preserve and distribute wealth. A wide variety of estate planning tactics can help minimize taxes and administration costs, establish trusts, arrange who is to inherit a business, structure charitable and annual gift giving programs, etc. Only proper planning can assist in minimizing tax consequences.

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Deferred Executive Comp.

One of today's most exciting executive benefits is a non-qualified deferred compensation plan. Nonqualified deferred compensation arrangements allow employers to reward selected executives without taking on the administrative burdens of qualified plans. In many cases, deferred compensation is used in addition to qualified retirement plans, and other broadly based employee benefit plans.

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Executive Long-Term Care

An Executive Carve out plan can be used when a business decides to reward a specific group of executives by purchasing for each member in the group, a long-term care insurance policy. The executive are key employees are usually those who are key to the success of the business.

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Wealth Accumulation

Wealth accumulation planning begins with a detailed analysis of your personal and family information, assets and liabilities, life insurance, current estate plans, and proposed plans.

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Executive Bonus Agreement

A properly structured executive bonus agreement can be an excellent tool for recruiting, retaining, and rewarding key employees. It is more cost effective for employers to retain and reward existing key employees than to recruit and train new employees. It can be an excellent split dollar alternative and a way to help employees save for retirement or meet estate planning goals and provide financial protection for their families. An executive bonus arrangement is a simple way to help employees supplement other benefits, it is easy to implement and it is not subject to ERISA.

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