Estate planning can present challenges when certain conditions exist. When you are the owner of a family run business, you may well face some vexing circumstances.
To explain by way of example, let’s say that you have two sons and a daughter, and you have operated a business throughout your adult life. Early on, your sons decided that they would like to help you run the business, and they have done just that. You would like your sons to continue to run the business after you pass away, and they want to carry the torch.
The business may be your most valuable asset, so if you leave the entire business to your sons, where does that leave your daughter? This is the matter of inheritance balancing.
If you are in this situation, you could potentially utilize life insurance to balance the inheritances that your children receive. You could determine the value of the share that each son will have in the business, and you can take out a life insurance policy that will provide a payout that is equal to the value of these business shares. Your daughter could be named as the beneficiary of the policy.
After your passing, your sons could inherit the business. They could continue to run the business as usual, and nothing would be interrupted. Your daughter would receive the life insurance policy proceeds, and the inheritances would be equally balanced.
This is a very simple example, but life insurance is often at the core of inheritance balancing.
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Our firm has prepared an extensive collection of in-depth special reports that cover many different estate planning and elder law topics. Some of them focus on matters that are of interest to business owners, and some of them are more general in nature.
You should certainly understand all of the facts when you are planning your estate so that you can make fully informed decisions. These reports cover a lot of ground, and you can put a great deal of sound information under your belt if you take the time to access the reports that interest you.
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Small Business Planning Consultation
We can help if you would like to devise an inheritance plan as a small business owner. Our firm offers free consultations, and we provide our clients with personalized attention. It can be difficult to discuss personal matters with someone outside of the family, and we understand this dynamic. We endeavor to make our clients feel comfortable every step of the way.
If you would like to set up an appointment, send us a message through this page: Hartford CT Estate Planning Attorneys.
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