|Individual Programs for Executives, Business and Estate Planning|
Protecting a Family's Business Interests
Our client wanted to protect his spouse’s interest in his business in the event of his death. Our solution called for appointing a trust the owner and beneficiary of a new life insurance program. Anticipated Life Insurance proceeds replaced the expected reduction in value of the executive’s business interest due to his death. The spouse’s financial position was thus secured.
Tax and Bankruptcy Guidance
Senior management of a publicly held company required technical support to negotiate and restructure its contractually promised Life Insurance Program. The insurance programs existed for over 15 years with both the executives and the employer having substantial assets in their life policies. Our focus was on working with the life contracts to assure each party (Executives and the Creditor’s Committee) was fairly paid for their interest in the contracts while avoiding a triggering of Executive tax liabilities.
Family office and Trustee Assistance
We represented several Forbes 400 families and a national trust company in restructuring a life insurance program. We reduced insurance costs and administrative fees by more than 50%.
Enhancing an Executive’s Supplemental Retirement Plan Survivor Benefit
A client’s supplemental retirement plan (SERP) provided the CEO’s spouse a survivor benefit. We recommended an alternative approach to fund that benefit which saved income and estate taxes for the family, while reducing company costs.
Group Life and Disability Insurance Alternatives
For the executives‘ disability needs we designed and helped administer a death benefit program for a Fortune 500 Company with over 10,000 employees. For over 400 executives, we replaced the group life benefit with Corporate Owned Life Insurance. The executives’ Death Benefit was increased by providing a greater multiple of pay and a higher maximum benefit. This approach eliminated reportable income while reducing the company’s cost for Group Life Insurance for the 10,000 active employees. For the executives’ disability needs, individual contracts were provided in addition to the Group LTD plan, thereby offering a higher monthly benefit and covering the executive’s own occupation. This arrangement allowed executives who left to take the policy with them.