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Business Succession

Retain and Incentivize Key Employees to Protect the Future

Critical to preserving a family’s legacy may be the implementation of a comprehensive succession plan.  Family businesses, businesses with non-related owners and family offices need to address the various contingencies impacting success.  

 

  • Succession Planning

  • Executive Retention

  • Executive Split Dollar

Succession Planning 

Succession planning is critical to supporting the effective transition of a business from one owner to the next; whether that transition occurs due to a planned exit by the owner or an unexpected or tragic event.  

 

For a business with multiple owners, it is often imperative that ownership is consolidated into the hands of the remaining active owners. 

Applicability

Business owners who wish to plan for a smooth ownership transition upon death or disability.

Executive Retention

The business owner needs to attract, retain and motivate their most essential asset ... the senior executives. 

 

Qualified plan regulations contain restrictions which penalize management and the highly compensated.  Therefore, companies utilize planning techniques such as Executive Split Dollar, 162 Bonus Plans, and Deferred Compensation Programs, to restore parity.

Applicability

Business owners who wish to place “golden handcuffs” on key senior executives or highly valued employees.

Executive Split Dollar 

This strategy uses a company owned life insurance policy on the executive to provide    pre-retirement death benefits and non-taxable supplemental retirement income to the executive. 

 

Cost recovery to the company is provided by a tax-deductible bonus of the policy to the executive at retirement or surrender of the policy if the executive leaves before retirement. 

Applicability

Companies which prefer to avoid the expense of 409a compliance for key executives who are at least 10 years from retirement.

Reduce the Impact of Income Taxes.

Transfer Market Risk, Guarantee Outcomes, and Reduce Taxes.

Maximize Funds Transferred to Family or Charity.

Tax Advantaged Structures to Maximize Retirement Income.

Retain and Incentivize Key Employees to Protect the Future.

A Powerful and Tax-efficient strategy to Fund Large Life Insurance Premiums.

© 2022 JR KATZ. All Rights Reserved. | One Northbrook Place 5 Revere Drive, Suite 550 Northbrook, IL 60062 | 847-564-8430 | Privacy Policy | Important Notice Regarding Compensation

Securities offered through Lion Street Financial, LLC (512.776.8400), member FINRASIPC. Investment advisory products and services offered through Lion Street Advisors, LLC, an investment advisor registered with the SEC. Lion Street Financial, LLC and Lion Street Advisors, LLC are affiliated companies and do not provide tax or legal advice. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed.

 

This site is published for residents of the United States only. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every advisor listed. 

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