the use of life insurance in business succession and estate planning presented by: mark rosenbaum

The Use of Life Insurance in Business Succession and Estate Planning

PRESENTED BY:MARK ROSENBAUM

Business Insurance and Succession Planning

• Do you have a plan to transition your business? If so, what is it?

• Stories of 2008 Plans that did not materialize


• Who do you plan to transition to? Why/When?

• Family• Employees• Merger or Outside Sale


• Family

• Do you have family members in the business?• What is their role?

• How will this transition treat them?• Are all children treated equally?• Will the future generations of children be working

together?• Under what management direction?


• Family

• Can they buy the business? • Do they have the resources?• What are the options for funding?

• Cash• Loans• Gift• NQDC• Installment Note


• Employees

• Who are the key people and what are their individual roles?

• Are they managers or potential owners?• What is the difference?

• Can they buy the business?• Do they have the resources?


• Merger or Outside Sale

• Who are potential buyers outside of the business• Have you spoken with them?

• What impact will an outside sale have on family/children/grandchildren?

• What impact will an outside sale have on key employees?

Questions for the business owner

• Are there circumstances under which you are willing to sell the business at a discount? If so, what are they?

• To the extend you have key people in place, will they stay for the transition? Why?

• What plans are in place to assure the success of your succession plan should you die early?

The role of Life Insurance in Business Succession Planning

• Keyperson

• Buy/Sell• Who pays the premium?

• Deferred Compensation/Golden Handcuffs

• Inheritance Equalization

• Estate Taxes

Risk Assessment in Planning

• What percentage of the owner’s estate does the business represent?

• Will the owner be carrying part of the purchase price?

Proper uses of life insurance and planning

• In considering the various uses of life insurance, which products are best suited to the client’s needs?

• Term• Whole Life• Universal Life• Index Universal Life• Variable Life

Stories of well intentioned planning gone bad… You have a solution

Stories of well intentioned planning gone bad… You have a solution

Summary

The value of Life Insurance Solutions in Business Succession Planning

the use of life insurance in business succession and estate planning presented by: mark rosenbaum

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