Helping Businesses Succeed in the "New Normal"

By: Bill Jackson J.D., CLU®

Things can happen quickly in the modern business world. The problem is most business owners are focused on the day-to-day activities that contribute to the bottom line. Many of these people list protecting their business, reducing its tax exposure, providing for retirement, and succession planning as key concerns, but there appears to be a disconnect between these concerns and actual planning. Some of these same businesses provide health plans and other employee benefits, but have failed to address the concerns mentioned above.

Most businesses, even those of medium-size, do not have an in-house employee focused on organizational protection, tax exposure, retirement and succession planning. Their other advisors, CPAs and Attorneys, are often generalists focused on tax returns and contract review. It is no wonder that with all of the other pressing business issues, these critical concerns go unaddressed.

Enter the financial professional, armed with specialized concepts and funding alternatives and a desire to help repair this disconnect. We are not talking about replacing the clients’ other advisors, rather we include them in the process. The financial professional can provide the impetus to consider proven alternatives and recommend appropriate funding solutions, such as:

• Repurposed Entity Buy-Sell (for retirement)
• Non-Equity Cross-Purchase Split Dollar Plan
• Key-Person Plan Repurposed to a Deferred Compensation Retirement Plan
• Focused Benefit Plan

Learn more about these solutions and how they can heal the disconnect and help business owners protect and continue their businesses in a tax-efficient manner, while carefully addressing one of our most pressing societal concerns, retirement.   Read the full article: “Helping Businesses Succeed in the ‘New Normal’” by Bill Jackson, senior advanced markets consultant at Partners Advantage, which first appeared in the April Broker World magazine.

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For financial professional use only. Not for use with consumers.

* The IRS has ruled privately on several occasions that owners of an LLC are “partners” for purposes of the transfer-for-value rule PLRs 9625013 through 9625019.

Policy loans and withdrawals will reduce available cash values and death benefits, and may cause the policy to lapse or affect any guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of un-recovered cost basis will be subject to ordinary income tax. Tax laws are subject to change.

Pursuant to IRS Circular 230, Partners Advantage Insurance Services and their representatives do not give tax or legal advice.  Accordingly, any tax information provided is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. Encourage your clients to consult their tax advisor or attorney.

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