Wealth Transfer
&
Life Insurance
01
Wealth Transfer
Wealth transfer planning enables you, as a family leader or business owner, to control your assets on your own terms.
Defining your wealth transfer objectives is a critical step in establishing a purposeful and intentional wealth transfer plan. But waiting until you know every answer could result in waiting too long. Opportunities to maximize your legacy could be overlooked. Misunderstandings in your family or company could develop, and the potential for valued tax savings could be lost forever.
Let the team at FinSec Life help you prepare strategically and thoughtfully to transition your success into succession.
02
Estate Liquidity
Estate liquidity planning equips your heirs to manage your estate and their inheritance strategically.
Life insurance, as a component of estate liquidity planning, can help ensure that your family is never compromised by cash flow in the process of estate settlement. It can also be a source of capital to help your business fund the transitionary period following the loss of a key executive or provide the funds to buy a deceased partner’s business interests as part of a buy-sell agreement.
With many ways to structure your estate liquidity plan and ongoing developments involving your assets or those of your company, as well as periodic regulatory changes, you’ll want to evaluate your plan with guidance from a knowledgeable professional.
Hybrid Life/Long Term Care
03
You work hard to ensure the security and financial well-being of your family. In many cases, your commitment extends to your valued employees as well. But even solid financial planning may be challenged by the rising costs of long-term care for you or a family member in the event of illness, injury, cognitive decline, or reduced mobility.
Fact: Medicare and most health insurance plans do not cover long-term care costs. (medicare.gov) Medicaid may cover long-term care costs, but typically only when all other resources have been depleted. Also, Medicaid options vary by state and, when applicable, offer limited to no personal choice regarding the terms of care.
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Hybrid Life/Long Term Care insurance can help protect money already allocated for retirement.
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A hybrid life/long term care plan protects an individual who doesn’t have a family member to act as a caregiver or doesn’t want to put this responsibility on their loved ones.
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For family members or workers who lack the resources to pay out of pocket for care, a hybrid life/long term care plan can be the safety net between the person in need and what could be years of marginalized or inadequate care.
Owner Succession Buy/Sell
04
The dynamic leaders who build or grow privately held or family-owned businesses have a vision, a passion, and a lot on their plate. Daily demands can get in the way of developing an owner succession plan. FinSec Life can shoulder this responsibility for you, developing a plan tailored for your organization’s needs.
A well-crafted owner succession plan creates a framework around a career, freeing owners to pour their energy into the present. A buy-sell agreement is an important component of an owner succession plan for any business with more than one owner. An owner’s death, disability, retirement, career change, bankruptcy, or divorce are examples of the type of events that can damage or destroy a business when no buy/sell agreement is in place.
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An Owner Succession Plan does more than provide continuity and potential liquidity and tax advantages, even though these are critically significant outcomes. With an exit strategy in place, business owners can move forward confidently, knowing they are in control as their life story unfolds. Customizable to serve the owner’s objectives, a succession plan can, for example, be structured to skip estate taxes for a generation.
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A Buy-Sell Agreement protects ownership rights. Buy-sell agreements stabilize a business for employees and clients and protect the rights of co-owners, shareholders, and heirs, creating potential tax savings and guaranteeing a buyer for the asset.
