Supporting Business Owners and Their Families
Mrs. Rudolph and Mrs. Martin were joint owners of a successful IT consulting firm. Their company was structured as an LLC, and the current plan was to buy each other out when the other decided to retire. if one owner died, the surviving spouse would inherit half the business. Retirement was on the horizon for Mrs. Martin within the next few years. However, Mrs. Rudolph and Mrs. Martin had not taken the time to map out their business succession plan.
Our Approach
The Solution
- We created a plan to address the lack of insurance funding for the buy-sell agreement, provisions to cover full disability and/or divorce of an owner, and the long-term retention of their employees.
- We helped the clients purchase individual life insurance policies on each other to fund the buy-sell agreement.
- We arranged a meeting with an attorney to update their existing LLC agreement to include provisions for disability and divorce.
- We installed a retirement plan that we would manage and monitor for each of their employees, which would be funded through both employer and employee contributions.
The preceding case study is for illustrative purposes only and may not be representative of the experience of other clients. Actual performance and results will vary. This case study does not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted regarding your specific situation.