Both business owners and executives can benefit from non-qualified benefit plans. When considering which options make the most sense, the questions revolve around:
Business owners can use life insurance to protect their businesses and provide important benefits to their employees. Without proper planning and funding, many businesses fail to continue to the next generation.
Here are 4 ways life insurance is used in business planning:
LTC in the News
The word is spreading. Major news outlets are letting the American people know the importance of long-term care planning. Are you? Here are a few recent third-party articles.
- ThinkAdvisor.com – Widowed Sisters Are Doing It for Themselves (But They Still Need Your Advice)
- AALTCI.org – It’s Harder To Health Qualify For Long-Term Care Insurance, Start Earlier
- SeniorsMatter.com – Normal Memory Loss with Aging: When Should You Worry?
Following the 2017 Tax Act, many advisors have asked how to respond to clients who say that there is no urgency in planning given the tax changes. To address this lack of urgency, consider the following:
- the non-tax needs of the family–including liquidity to equalize gifts among heirs,
- the preference heirs may have to buy each other out of unwanted assets, and
- the desire to ensure long-term care for a special needs family member.
Transfer tax planning for high net worth clients can be sophisticated. When the client is a foreign national, planning becomes even more complex due to the myriad of tax rules based on residence, citizenship, type and situs of property, and how the property is being transferred– as a gift during lifetime, or as a bequest at death.
Below are 4 general charts that help navigate through the rules. Treaty agreements between the U.S. and the non-citizen’s home country may alter or replace the general rules discussed herein.