Lund & Guttry LLP

36917 Cook Street Suite 102, Palm Desert, CA 92211

Phone: 760-568-2242              Fax: 760-346-8891


Website: www.lundandguttry.com

December 2018

Slicing The Inheritance Pie

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How do you fairly treat family members who aren’t involved with the business when other family successors inherit your company? If estate equalization is the goal, life insurance can help you get there cost-efficiently.


ASSET RICH, CASH POOR
Let’s say you own a $2 million business, which you intend to pass to your daughter. You have a son who isn’t involved in the business at all and doesn’t want to be a future part of it. You could have your heir who won’t be in the business inherit an equal amount of other assets and cash. What, however, do you do if your portfolio is asset-rich but cash-poor like many family concerns?


ESTATE EQUALIZATION
With sufficient time and careful investing, you could sock cash into an account you will use to equalize your estate. Or you could buy a life insurance policy with a $2 million death benefit going to your son as beneficiary, while your daughter becomes beneficiary of your company.


Talk to a financial professional to learn how you might structure an estate equalization approach.


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