If you are a business owner you have to develop an exit strategy. You should also take legal steps to protect your personal assets from litigants and creditors.
Our firm can help you develop a comprehensive financial plan that leads to the fruition of your goals.
Business Continuation Agreements
It can be challenging to plan your estate when you are one of the owners of a closely held business. The other partners may want to continue running the business after you pass away. How do you arrange for your share to be distributed among your heirs?
This can be accomplished through the creation of a buy-sell agreement.
There are different types of buy-sell agreements. With the cross purchase plan, the value of an ownership share is determined. Each partner purchases life insurance on every other partner.
After the death of one partner, the life insurance proceeds are used to purchase the share that was owned by the deceased partner.
As an alternative, the business entity itself could purchase the life insurance on the shareholders. This is called the redemption plan.
A business continuation agreement can be an integral part of your estate plan if you are a partner in a closely held business.
Family Limited Partnerships & Limited Liability Companies
It is important to protect your personal assets if you are a business owner. This is often accomplished through the creation of family limited partnerships and limited liability companies.
With these legal structures you are separating your personal financial assets from assets that are the property of the partnership or limited liability company.
Asset Protection Special Report
If you would like to learn about asset protection in-depth, download our free special report on the subject. To gain access to the report, click this link and follow the simple instructions: Asset Protection Report.
Hartford, CT Asset Protection & Business Planning Consultation
Contact our firm to schedule a free consultation if you would like to discuss business succession planning and asset protection with a licensed estate planning attorney.