Using A Special Purpose Insurance-only Llc To Fund A Buy-sell Agreement 2022 | Society of FSP | 1 September 2022 | Online
Venue
What is Qwoted?
Qwoted is a free expert network: we help reporters connect with experts & we help those same experts build relationships with top reporters.
| Event Date | Thu Sep 1 EDT (over 2 years ago) |
| Location | Online |
| Region | All |
Details
The cross purchase buy-sell plan design is generally preferred over the entity purchase plan design due to the automatic step up in cost basis. However, a cross purchase plan can become unwieldly for companies with three or more owners as multiple life insurance policies to fund the agreement are often necessary. The insurance-only LLC can provide a means to fund a cross purchase plan that can result in an automatic step up in cost basis while requiring the purchase of only one life insurance policy per owner. The speaker’s presentation will include a case study illustrating the plan in action.
What Attendees Will Learn:
• Pros and cons of standard cross purchase and entity purchase buy-sell plan structures
• Circumstances in which the insurance-only LLC buy-sell plan design may be appropriate for business owners
• Detailed description of how the insurance-only LLC plan is structured and its advantages over standard plan designs
Speakers
2022 Speaker
Mark T. Brumbaugh, JD
Senior Consultant in Guardian's Business Resource Center for Advanced Markets