Check the background of this financial professional on FINRA's BrokerCheck.

Learning Center


Every stage of life has its own financial needs and concerns. The life events on this page can help you target the key financial strategies and issues that are likely to be most important to you in this stage of your life.

Starting Out    Changing Jobs    Coping with Unemployment    Getting Married    Starting a Family    Saving for College    Starting a Business    Planning/Saving for Retirement    Managing College Expenses    Long-Term Care Planning    Planning an Estate    Planning for Business Succession    Nearing Retirement/Retirement    Caring for an Aging Parent    Loss of Spouse    Financial Windfall    Getting Divorced   
 
Beneficiary Designations for Buy-Sell Agreements Funded with Life Insurance
Beneficiary Designations for Buy-Sell Agreements Funded with Life Insurance

The general rule is that the party with the obligation to make the purchase of the business interest at an owner's death is the party that should be the beneficiary of the funding life insurance policy. As such, the logical beneficiaries for each form of buy-sell agreement are shown below.

 Surviving spouse/heirBusiness entityBuyerSeller's estateTrustee
Entity purchase agreementNoLogicalNoNoCan be used, but not common
Cross purchase agreementNoNoLogicalNoIf a trusteed cross purchase
Trusteed cross purchaseNoNoNoNoLogical
Wait and see agreementNoMaybeMaybeNoMaybe
Section 302 stock redemptionNoLogicalNoNoNo
Section 303 stock redemptionMaybeLogicalNoNoNo
Reverse Section 303 redemptionLogicalNoNoNoNo


©2018 Broadridge Investor Communication Solutions, Inc. All rights reserved.
Tell A Friend Tell A Friend
Connect with us on: Go to LinkedIn  Go to Facebook  Go to Twitter  
 
 
 

IMPORTANT DISCLOSURES

Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. 

Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). 

Luminous Wealth Management, LLC and JWC/JWCA are unaffiliated entities. 

J.W. Cole Financial Representatives do not accept orders and /or instructions regarding your account by e-mail, voice mail, fax or any alternative method. 

Privileged/ Confidential Information may be contained in this message.



This communication is strictly intended for individuals residing in the state(s) of AZ, FL, KY, MI and OH. No offers may be made or accepted from any resident outside the specific states referenced.
 


Check the background of this financial professional on FINRA's BrokerCheck.