For the Love of Life Insurance

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February is the month of love and life insurance can be a wonderful gift. But whether a policy is for family, friends or business partners, it should be reviewed periodically to make sure it still meets the intended goals. Now is a great time to review your clients’ buy-sell agreements to make sure they are still up-to-date and provide the protection needed.

The Connelly case is a great reminder of the need to keep an ever-present eye on buy-sell agreements. The Eighth Circuit decided that the life insurance policy would be included in the estate — denying the offsetting deduction for the contractual obligation to redeem shares. Now this case is headed to the US Supreme Court.

If SCOTUS agrees with the Eighth Circuit, entity-redemption buy-sell plans may become a less attractive option. Connelly may make Insurance LLCs an ideal buy-sell option for succession planning. Explore this timely topic with these resources:

Additional Advanced Markets resources are available at: JHSalesHub.com