PLANNING YOUR BUSINESS WEALTH TRANSFER
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If you own a company and you have one or some of your children involved in its operations, you may be facing a few estate planning challenges. Given that a business owner’s wealth is often tied up in their company, transferring its value (upon death) to their children, including those who are not involved in it, can sometimes be tricky and worrisome. Here are two simple life insurance strategies to consider:
- Use life insurance as an effective tool to even out assets among children. Upon the death of the business owner, active children inherit control of the company and the passive ones get an equivalent value through the proceeds of the life insurance.
- Use life insurance to protect the continuity of the business operations. The additional cash flow could help hire seasoned executives to support less experienced children in running the business or simply fine tuning projects up to their final completion (real estate construction for example.
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Transferring wealth to passive children and protecting the family business continuity are important issues for business owners! To learn more about estate planning strategies or receive our complimentary publication entitled Estate Planning Checklist,
contact your Investment Advisor.