Corporations: Insured Stock Redemption Buy-Sell Plan pt. 2

Part 1: https://geoffreyjthompson.wordpress.com/2017/07/21/corporations-insured-stock-redemption-buy-sell-plan/ In a closely-held corporation where there are a few shareholders, heirs of a shareholder who dies face a number of problems if no plan is in place. Need for Income Dividends are sums of money paid on a regular basis by a corporation to shareholders from the profits of the business.  In … Continue reading Corporations: Insured Stock Redemption Buy-Sell Plan pt. 2

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Corporations: Insured Stock Redemption Buy-Sell Plan

When a person owns stock in a closely-held corporation, they are often one of a limited number of shareholders.  If a shareholder of a closely held corporation dies, there is often no legal effect on a closely-held corporation.  However, some real and practical consequences can have an adverse impact on the corporation to continue as … Continue reading Corporations: Insured Stock Redemption Buy-Sell Plan

The Mechanics of an Insured Cross Purchase Buy-Sell Plan

The economical and efficient method of a cross purchase buy-sell plan that is funded with life insurance allows a deceased partner’s business interest to be quickly bought by the remaining partners without the having to borrow money, drain business assets, or become involved in a long drawn-out legal battle. When involved in a partnership, if … Continue reading The Mechanics of an Insured Cross Purchase Buy-Sell Plan

Partnerships: Insured Buy-Sell Plan

Addressing the financial issues of a partnership when one of the partner’s dies is often a concern for those planning for their family.  At the death of one partner, a partnership is dissolved if there is no agreement beforehand.  The partnership no longer exists and the surviving partners do not have a legal authority to … Continue reading Partnerships: Insured Buy-Sell Plan

Sole Proprietor: Insured Buy-Sell Plan

Many people wonder why they should worry about the “family business” when the sole proprietor dies.  Typically, when the sole owner dies, the business will not continue leaving those who are dependent on the income from the business without many options.  Therefore, a buy-sell agreement funded with life insurance provides the liquid assets to the … Continue reading Sole Proprietor: Insured Buy-Sell Plan

Estate Planning: Living Will & Power of Attorney

Health care directives are instructions given to allow for a person’s wishes to be carried out if they are not able to speak for themselves.  There are two common types of health care directives:  a living will and a durable power of attorney. Living Will A living will is a legal document in many states … Continue reading Estate Planning: Living Will & Power of Attorney