Business Succession Planning

Connelly v. US Update

October is Financial Planning Month, which focuses attention on efforts such as estate planning, long-term care planning, determining familial goals for charitable giving, retirement planning, and our topic for the month, creating a business succession plan.  Financial Planning Month is a good time to take stock of the financial goals you have and work out a road map to achieve them.  We urge you to consider life insurance as a viable vehicle to take you down the path to complete your financial portfolio.

As the dust settles after the US Supreme Court’s decision in the Connelly v. US case, it’s a good time to re-visit the effects the ruling will have on business planning.  The number one takeaway is that all buy/sell agreements should be reviewed and any life insurance that was implemented to fund the arrangement should be audited. 

We stress that successful business owners should work closely with qualified advisors to address the Connelly holding and to ensure that their plan is compliant with IRC Sec. 2703 and existing case law.  We are pleased to provide our Buy/Sell Planning Client Guide to help navigate the options available to business owners.  If it is determined that the agreement meets the requirements, then any inforce life insurance should be audited to determine the appropriate owner and beneficiary structure for the policies.

Click here to read more:  Connelly v. U.S. From “What Now?” To Here's How — Solutions for Business Owners

Since we spend much of our time working with advisors, many of our new client relationships come directly from attorneys, accountants, and wealth managers. We have gained the trust of these advisors, and in turn have earned the privilege to be of service to their clients.  Contact us with any questions or opportunities to help you or your clients achieve identified goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.