Creating A Family Legacy

With a carefully drafted plan utilizing lifetime gifting, estate planning and possibly a subsequent sale, you can help meet multiple goals: keeping control of the business for as long as you wish, minimizing the size of your estate, providing for retirement and survivor income needs and efficiently turning over the business to the next generation.

But what about children who live elsewhere or have other careers or interests that do not include running the business? If you would like to treat all of your children fairly and equitably, regardless of their participation in the business, you should consider "estate equalization" using life insurance. This involves purchasing a life insurance policy (or policies) with a face amount equal to the amount you want to leave to your non-business heirs. By doing so, the overall value of your estate can be split between your heirs: the business is transferred to those who are involved, and the life insurance proceeds are paid income tax-free to the others. Speak to an agent for more information about implementing this type of plan for your family.