As the owner or person responsible for your company's retirement plan, you like to:
We work with professionals like you who are responsible for their organization's retirement plan to provide tools and resources to assist plan sponsor with plan oversight resposibilities for your organization. In addition, we assist the plan sponor with an annual plan review. We manage and monitor a benefits package that fits your organization's needs as well as attracts good employees and motivates them to grow with the company. We provide plan support so that you and your organization are able to take advantage of potential tax benefits in seeking to reduce costs, improve efficiency and enhance employee satisfaction.
TriSummit can also provide consulting services to structure additional Business Owner and Employee Benefits. Key Person coverage is a business benefit example. Who your company wants to cover with Key Person insurance depends on the nature of the business and its employees. In many partnerships, the founders are crucial to the success of the business, and so insuring against the loss of one or more partners is a smart business move. For some businesses, the entire management team might be considered difficult to replace, so Key Person insurance could be purchased for each member of the team. Some businesses may also have lower-level employees who have built up personal connections with major distributors or clients, whose loss could conceivably cost the loss of those clients.
The monies from Key Person insurance may go to pay for many different things. One of the most common uses of Key Person insurance is to buy back shares in a company from the estate of the deceased. Particularly in the case of the death of a founding partner or majority holder, this can be crucial to helping the business retain control over its own destiny. Key Person insurance payments may also be used to pay a headhunting firm to find a suitable replacement for the lost employee, to cover expenses while the business adjusts to the loss, or to cover lost cash flow from clients who leave with the loss of a key employee.
In addition to purchasing life insurance, many businesses also buy disability insurance as part of their Key Person coverage. This will help cover temporary losses in productivity while a crucial employee is rehabilitating. Key Person insurance can range in coverage from as low as $25,000 to well over $1 million, depending on any number of factors involved. Particularly in cases where the insurance is going to be used to buy back stock, the policy will need to be reappraised frequently to ensure that the payment will be sufficient to cover all expenses in the event of the key person's death.
As a business owner you may have pressing buy-sell agreement concerns such as:
Because there are legal and tax implications, TriSummit works in conjunction with your attorney and CPA during the succession planning process. Buy-Sell agreements often need to be carefully crafted to fit the individual needs of a small business and its partners. So it is important to retain a qualified attorney who can help your business draft a buy-sell agreement. A critical part of buy-sell agreements is placing a value on the business. Your tax preparer may assist in your business valuation.