Advanced Planning Presents: Optimizing Buy-Sell Planning with the "Life Insurance LLC"

Date / Time

Venue

This is a virtual event, accessible on-line and over phone. Access instructions will be provided after registration.

Description

This is a complimentary program sponsored by Northwestern Mutual.

Clients usually seek buy-sell arrangements that provide increased legal certainty as well as tax efficiency.  It is also common for them to use life insurance because it provides funding at the exact time when funding is needed.  To accomplish these goals, they probably want to combine some of the best legal and tax attributes of cross-purchase and entity-purchase arrangements. 

Their buy-sell wish list can be long: 

• Create a market for transferring business interests with an agreed-upon valuation structure;
• Fund the buy-out obligation with life insurance death benefit; 
• Reduce the potential for discord and litigation between business owners upon the death of one of them;
• Centralize the ownership and management of the life insurance policies in a way that provides increased creditor protection from the operating business’s creditors and the individual’s personal creditors;
• If a business owner dies, provide the surviving business owners with the full tax basis for the death benefit received; 
• Avoid estate tax inclusion for the death benefit; 
• If the buy-sell arrangements ceases while the business owners are alive, permit each owner to obtain the policy insuring him or herself without triggering income tax to any of the parties;
• Avoid the annual taxable term rates with endorsement split dollar.

Can all of their wishes to come true? Yes! By using an LLC with provisions designed to accomplish these goals.

Educational Objectives:

• Understand the different types buy-sell arrangements
• Learn about using a partnership to facilitate a business buy-out
• Understand the unique tax attributes of life insurance in the context of business buy-outs

Who would benefit most from attending this program?

accountants, and CFP® practitioners who want to learn more about tax and legal concepts of buy-sell planning, with a focus on partnership and S corporation tax concepts as well as tax principals associated with life insurance.  Attorneys, accountants and CFP® practitioners will also receive continuing education credit for their participation.

Presenters

Moderator: Patrick J. Bodden, JD
  • Director
  • Northwestern Mutual

Patrick joined Advanced Planning at Northwestern Mutual in 2014. Prior to joining Northwestern Mutual, Patrick was in private practice at two law firms: von Briesen & Roper, s.c. and Ruder Ware L.L.S.C. While in private practice, Patrick focused on business transactions and estate planning. Before attending law school, Patrick worked at Robert W. Baird & Co. in the institutional equities trading department.

Phillip A. H. Roemaat, JD, CPA, CLU®, CFP®
  • Senior Attorney
  • Northwestern Mutual

Phil joined Advanced Planning at Northwestern Mutual in 2015. Prior to coming to Northwestern Mutual, Phil was in private practice at a regional accounting firm, Baker Tilly Virchow Krause, LLP. His focus was on income tax planning and compliance for high net worth individuals, closely held businesses, and their owners. During law school, Phil interned with Associated Banc-Corp and Office of Chief Counsel with the Internal Revenue Service.

Charles R. Levun, JD, CPA
  • Partner
  • Levun, Goodman & Cohen, LLP

Mr. Levun is a partner in the Chicago-area law firm of Levun, Goodman & Cohen, LLP. He is also an Adjunct Professor of Law at the Illinois Institute of Technology Chicago Kent Graduate Tax Program, Editor-in-Chief of the Journal of Passthrough Entities and consultant to the CCH Partnership Tax Planning and Practice Guide, for which he is the author of the monthly “Partner’s Perspective” column. Mr. Levun received a JD from the University of Chicago Law School and a BS in Accounting from the University of Illinois. He is a past chair of the Partnerships and LLCs Committee of the American Bar Association’s Section of Taxation, the Chicago Bar Association’s Federal Taxation Committee and the Federal Taxation Section Council of the Illinois State Bar Association, and a Regent and Fellow in the American College of Tax Counsel. Mr. Levun has been chair of the faculty and co-sponsor of the Annual Partnership, LLC & S Corporation Tax Planning Forum® and the “Fundamentals of Flow-Through”® Partnership, LLC & S Corporation Tax Seminar since their inception in 1987 and 1996, respectively.

Continuing Education

Credits:
1.2 CPE, 1.0 General COA, 1.0 CLE, 1.0 CFP
Practice Areas:
Legal, Tax
Prerequisite:
• A basic understanding of buy-sell planning techniques. • A basic understanding of partnership and S corporation tax concepts.
Level:
Intermediate
Production Date:
08/23/2018