Background: Facing an issue that is not uncommon today, a bank incurred an 8.9% increase in its health insurance premiums. Because of lower margins and a low-yield environment, the bank passed all of the increased expenses to its employees. The bank was unable to compete in its market for top talent with this short-term solution… Read more »
Trust-Owned Life Insurance (TOLI)- To Have and to Manage
Trust-Owned Life Insurance (TOLI)- To Have and to Manage Patrick J. Marget, JD, CPA, CFP, CLU- Managing Director Facts: 25% of non-guaranteed TOLI will lapse during the insured’s lifetime, even with current scheduled premiums being paid. More than 70% of TOLI policies have no servicing agent. 83.5% of trustees have no policies or protocols in… Read more »
Common Oversights in Split-Dollar Plans
AALU “Split-dollar arrangements (SDAs) can provide insurance planing flexibility in both business and private settings. Business SDAs generally are between a company and an insured employee or owner (or commonly his or her ILIT if the insured wishes to keep the proceeds out of his or her estate). A company may incorporate a SDA into… Read more »
Succession Planning for Family-Owned Banks and Businesses
You are gone tomorrow. What happens to the business you poured years of blood, sweat and countless sleepless nights into? Will your family take it over? Is there an outside buyer for the business? What income will your loved ones use to survive? These are questions the people you care about will ask if you… Read more »