Both business owners and executives can benefit from non-qualified benefit plans. When considering which options make the most sense, the questions revolve around...
An ILIT is an Irrevocable Life Insurance Trust, created primarily to own life insurance, and sometimes other assets. The trustee of an ILIT is the fiduciary of the trust assets. The trustee can be a family member (who is not the creator or ‘grantor’ of the trust), or an independent trustee at a bank, for example. Regardless of who is named trustee, the trustee has a fiduciary responsibility to manage assets for the benefit of trust beneficiaries.
A plan to retain key employees is the key to the continued success and growth of the company.One very powerful plan is the Executive Bonus Plan— a simple and cost-effective way for an employer to provide a valuable benefit that creates an incentive for the key employee to stay:
Psst. I’ll let you in on a little-known buy-sell strategy that avoids many of the pitfalls of traditional arrangements. The LLC buy-sell combines the benefits of a cross purchase buy-sell and an entity buy-sell while eliminating many of the challenges business owners and their advisors typically face. The owners of a successful business should plan for the transfer of the business to the next generation. Buy-Sell plans can make all the difference in a successful transfer of the business to surviving business owners in the event of a triggering event, such as the death, disability or retirement of one of them-- all while protecting the financial interest of the surviving family members.
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