Malleo Financial Services

Michael A. Malleo 

Phone: 201-321-7041

mike@malleofinancialservices.com

 

Terms of Notarial Acts:

Acknowledgement – Certifying that a signer personally appeared before the Notary, was identified by the Notary, and acknowledged freely signing a document.

 

Malleo Financial Services is a proud member of ALTA (American Land Title Association), the American Society of Notaries, and the National Notary Association (NNA). We're also a Fidelity National approved closer. 

 

FIDELITY APPROVED CLOSER
FIDELITY APPROVED CLOSER

 

*The opinions expressed on this website are strictly those of Malleo Financial Services, LLC and not those of ASH Brokerage Corp.., or any of our affiliates.

 

*Malleo Financial Services LLC cannot and

will not give any tax or legal advice.

 

Keeping It in the Family (Business)

 

If you have a family business you need to ask yourself the following:

 

  • Do I have any family members who are interested in taking over my business? 
  • Have I identified which family member(s) will take over?
  • Do I have a succession plan in writing?

 

Challenge

Jim Caan has owned and operated Caan Car Sales & Service for more than 30 years, and he’s always been the main salesman for the company. His son, Scott , has been working in the business for 10 years – as a mechanic mostly, but also in sales, and even in the finance department. Even though Scott is interested in taking over for his father someday, they don’t have a plan in place for transition. Jim wants to make sure his son is prepared to take over the business whenever the need arises. 

 

 

Solution 

Jim's advisor recommended a One–Way Buy–Sell Agreement, where Scott agreed to purchase a Level Term life insurance policy on the life of his father to cover him until he retires. Additionally, Jim and Scott entered into an Endorsement Split–Dollar Agreement, which serves a dual purpose. It not only creates the needed Key–Person protection for Jim in the event Scott passes away, but it also creates an incentive for Scott to stay in the business. 

 

 

Action 

A plan in your head won’t work – you’ve got to put it down on paper. Once you’ve identified a successor for your family business, it’s vital to create a plan for your eventual transition. We at Malleo Financial Services can work together with your attorney to help you create the necessary agreements and purchase the proper insurance to ensure your business and family are protected.

 

 

 

For a free consultation, please contact us for an appointment.

 

 

 

 *This blog is strictly the opinion of Michael A. Malleo and not those of

ASH Brokerage Corp., nor any of our affiliates.

 

Malleo Financial Services LLC cannot and will not give any specific tax or legal advice.

Please consult your tax professional or legal professional for such advice.