What You'll Learn
When a client’s business is their largest asset, succession planning becomes essential. Join tax & estate attorney Andy Weinhaus and insurance advisor Kevin Kimbrough to learn how life insurance safeguards business continuity through buy-sell funding, key-person protection, and family…
When a client’s business is their largest asset, succession planning becomes essential. Join tax & estate attorney Andy Weinhaus and insurance advisor Kevin Kimbrough to learn how life insurance safeguards business continuity through buy-sell funding, key-person protection, and family transition strategies—while addressing the valuation, liquidity, and tax complexities that can derail a succession plan. Advisors will leave with actionable guidance on integrating life insurance into cross-purchase, entity, and trust-owned buy-sell arrangements that ensure fairness, liquidity, and tax efficiency for all stakeholders. A special emphasis will be placed on the 2024 U.S. Supreme Court decision in Connelly v. United States, a landmark case that held that corporate-owned life insurance proceeds used to redeem a deceased shareholder’s stock increase the corporation’s value for estate tax purposes—potentially inflating the taxable estate and undermining liquidity planning. Advisors will learn how Connelly affects valuations, the design of buy-sell agreements, and choices between cross-purchase and entity-purchase structures. The discussion will include practical steps to avoid inadvertent estate tax exposure, such as aligning redemption obligations with fair market value, documenting valuation methodology, and considering alternative funding structures.
Learning Objectives
- Understand how life insurance supports cross-purchase, entity, and hybrid buy-sell agreements in light of Connelly.
- Evaluate coverage amounts and ownership structures that align with business valuations, statutory requirements, and succession goals.
- Identify how key-person insurance protects both company and successor interests.
- Guide clients through tax, funding, and timing factors that impact business continuity and post-death liquidity.
Case Study: A family-owned business navigating succession between 2 siblings, balancing liquidity for buyout funding, estate equalization, and management continuity—all through strategic use of permanent insurance
*CE/CPE Eligible: 1.5 CE credit(s) is(are) available to FEN Members with these designations: CFP, CLU, CHFC, RICP.
Field of Study: Specialized Knowledge
Prerequisites: There are no prerequisites for this session.
Advanced Preparation: None
Program Level: Basic
Delivery Method: Group Internet Based
NASBA Approved
Financial Experts Network (Sponsor Id#: 145173) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.