Business Owners Suite · Estate Equalization
Business Transition
One child wants to run the company. The others do not. If the business is your largest asset, an equal division on paper can force the child who stays to sell it or borrow heavily against it in order to pay the others. Insurance proceeds are one way to pay the children who are not involved, so the one who is keeps the company intact.
The Structure
What it does
A permanent policy with a death benefit sized against the company's value lets the heirs who are not in the business receive their share in cash, while the heir who is receives the company itself.
What has to be true
Equalization only feels equal if everyone accepts what the business is worth. That number is set with an independent valuation and documented in the estate plan, not left for the family to work out later.
Where it comes apart
Plans that surprise the heirs create the resentment they were designed to prevent. The conversation is uncomfortable once. The alternative is uncomfortable permanently.
Equal and fair are not always the same thing. A plan built well can deliver both.
Begin the Conversation
Thirty minutes, no presentation, no obligation. Bring the agreement if you have one. If you do not have one, that is a useful place to start.
Important: This page is general education. It is not legal, tax, accounting, or individualized financial advice. Buy-sell agreements, split dollar arrangements, deferred compensation plans, and trusts should be drafted by a qualified attorney, with tax treatment confirmed by a qualified tax professional. Life insurance policies contain costs, charges, limitations, exclusions, and conditions; coverage depends on underwriting and on the terms of the policy issued. Guarantees are backed by the claims-paying ability of the issuing insurance company. Video content is produced by the issuing carrier and is presented with attribution.