Integrating Wealth Preservation, Succession Planning, and Asset Protection

If one were to compile a list of goals that any business owner would either vocalize or internalize, it would most likely include the following:

• Create and preserve the value of the business
• Exchange that value for money (full business worth) with minimal impact of taxes
• Provide security and continuity of the business in the event of personal catastrophe
• Leave a legacy
• Shift wealth to children and reward key employees
• Grow the business while active; keep or sell it upon his/her exit

To achieve the majority if not all these goals, lifetime and death planning tools are essential. This requires, therefore, the integration of lifetime succession and business objectives with a comprehensive estate plan. Typically, the business owner will often desire to address the business planning component first. Once his/her goals are crystalized, and a plan for the business is in place, the business owner will realize that his/her overall estate plan has already begun to take shape.

Growing the business and protecting its value will foster the ability to sell the business, maximize the amount realized on its sale, protect assets from the claims of business or even personal creditors, and motivate key employees and family members within the business.

One of the facts of business life is that many business owners do not think about asset protection until a claim actually arises. The obvious answer is to plan for and install the protection before it is needed! Whether it is fire and casualty-related, or death and disability-related, a customized plan of insurance is essential to address early in the planning process and updated as the entity grows. Lastly, there are legal entities such as irrevocable trusts that can own certain facets of insurance protection, resulting in a claim payment that, if structured properly, is outside the estate for estate tax purposes.

If there is truth that all insurance is about “risk management”, the pennies-on-the-dollar protection from term life insurance and potential tax-free inside buildup of permanent life insurance call for serious funding consideration. It is risk management at its best.

Questions?

Our Life Insurance Expert

James P. Cahill, CLU

James is a 40-year veteran of the life insurance marketplace in the Greater Chicago area. His career has included a 22-year association as a branch manager and senior account executive with Hartford Life, earning top national office and top national account executive designations, while qualifying for award-conference level in 20 of those 22 years.

Our value proposition is a simple one.  Offer a thorough and cost-effective solution to business clients through careful analysis, consultation and implementation.

Contact James at info@GoCGO.com.