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.

 

Business Liquidity Issue

  • How much of your gross estate consists of your business? 
  • What would happen to your business if you were to die tomorrow?
  • Are you depending on the business to provide a significant portion of your retirement income?

 

Issue

Steve Austin is sole owner of a successful car dealership, which receives a valuation of $6 million. In order to fund his retirement, he plans to sell the business, which accounts for 90 percent of his personal estate. Unfortunately, Steve hasn’t identified a willing buyer and is concerned about how much he would receive if he sold the business to a third party – its book value is only 30 percent of the recent valuation.

 

 

Solution

Realizing the sale of the business may not provide the liquidity Steve needs in retirement; his advisor recommends the purchase of a life insurance policy held in a trust. A “Guaranteed-No-Lapse” Universal Life (GUL) policy is an affordable death-benefit-only (no cash value) permanent policy.  The GUL will provide a ready death benefit for Steve’s family, in the event of his premature death if he’s unable to identify a successor and fair selling price beforehand.  An irrevocable life insurance trust (ILIT) will keep the policy outside of his taxable estate, resulting in more money going to his beneficiaries and not towards estate taxes.

 

 

Action

If you don’t have a clear succession or exit plan in place and your business makes up a large portion of your estate, you could be putting your family and company in jeopardy. We at Malleo Financial Services can show you the value and peace of mind life insurance can provide.

 

  

 

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.