Broker Check

Lisa Raye Hund, ChFC® CExP™ MBA

803-242-1288

What is Business Continuity?

Business continuity encompasses planning and preparation to ensure that an organization can continue to operate in case of serious incidents or disasters and is able to recover to an operational state within a reasonably short period of time.

The ability to fund a buy-sell agreement is a major part of continuity planning and needs to be thoughtfully planned out to insure continuity of the business.  Typical uses of funding vehicles are life and disability insurance policies to provide immediate cash flow to the entity and partners.

Cross Purchase

Strategy When There Are 2 Owners.

Surviving Owner Gets Stepped Up Basis

Complex With 3+ Owners

Unfair With Age Gaps, Health Conditions or Ownership Percentage

 

Cross Purchase Buy Sell 

 

Entity Purchase

Only One Policy Per Owner

Easier to Administer With 3+ Owners

Loss of Stepped Up Tax Basis

Policies Are Exposed To Creditors Of The Business 

 

 

 

Entity Purchase Buy Sell

Special Purpose LLC

Equalizes Funding of Policies

Stepped Up Basis

No Transfer of Value Issues

Creditor Protected

 

 

 

 

 

Special Purpose LLC Buy-Sell