Business Succession Plans
Succession planning is the process of effectively transitioning the management and/or ownership of a business based on the objectives of the transitioning owner.
At David Cohen & Associates, we can help you develop a smooth and successful transition from your business, whether you are transferring ownership within a family or otherwise. Our unique approach encompasses your personal and business situation, and is part of a complete financial strategy that is designed to help reduce the tax impact of ownership changes, as well as ensure a smooth and successful transition of the business to the new owner or owners. A successful plan will also help enhance the overall value of your business today.
Corporate Asset Transfer Plans
This concept will allow you to increase the after tax value of your business through the use of a corporate owned insurance policy. Investment assets, that are currently invested within the corporation, can be transferred to a corporate owned insurance policy where the funds grow on a tax deferred basis. This effectively reduces your corporate tax bill and allows you to transfer these funds to your heirs outside of your will - reducing your final expenses.
Key man Protection
To maintain its success, your business relies on the leadership, experience or skills of one or more individuals. That person could be you, your business partners or a few key employees whose absence from your company could lead to devastation.
You can protect your business against the risk of these employees suffering from a premature death, by insuring them with key person coverage. Your business would purchase life insurance on the employee, pay the premiums and become the beneficiary of the policy. In the event of that key person's death, the business would receive the insurance proceeds, which can provide the funds necessary to help survive the tragic occurrence. We specialize in working with our corporate clients and their key people to design coverage packages that protect both parties from an unexpected loss. Key person coverage can be comprehensive and can include life, disability and critical illness insurance. In certain situations, premiums can be tax deductible to the corporation and premium discounts can be achieved.
With assistance from our specialists we can help you understand how corporate owned insurance can benefit both your organization and your employees.
Buy-sell
If you have one or more business partners, you likely have a written agreement that outlines a variety of issues, including what should be done in the event of the death, disability or retirement of one of the partners or shareholders. The agreement is meant to simplify the eventual buy-out by establishing valuation methods, terms of sale and other important components into place. There must be funding in place that ensures the terms set out in the agreement are met, when the surviving partners or shareholders are called on to purchase the business interest.
There are a number of options that you have to create this funding, such as saving, borrowing or selling assets. Another possibility you should consider is a life insurance policy, which can serve to be the most inexpensive, yet most valuable method of financing available. Unique to this funding model, as opposed to the others, is its guaranteed effectiveness in providing the necessary cash required at the time it is needed most. At David Cohen & Associates we can assist you with making sure this valuable insurance is in place.
