Is a good portion of your estate tied up in a family business?
It’s not easy to split up that estate among heirs. Especially if some kids are involved in the business and others are not. Leaving the business only to the participating child may be seen as unfair, but leaving equal shares can cause other issues.
Potential conflicts include:
- Participating child may be resentful of nonparticipants receiving proceeds
- Non-participants may question business decisions (i.e. payroll is eating into my share!)
- A portion of the business may need to be sold to buy out non-participating siblings
Creating an equitable distribution
A popular method of estate planning is to use a permanent life insurance policy. Parents can purchase a policy on themselves and the death benefit could be left to the non-participating child. Rebalancing the estate using life insurance can help the business stay in the family and maybe even help the kids get along!
Submit a request using the form on the right side of this page to request more information.