How to preserve your life's work

You've spent a lifetime building your business. Take a moment to make sure that your hard work will survive the death of you or one of your partners.

As the owner of a closely-held business, much of your wealth is probably tied up in the business. While returning earned income back into the business helps finance growth, it can cause severe liquidity problems for your estate when you die. After paying probate and estate taxes, your estate and surviving family members also may encounter liabilities that become payable upon your death. They may also face the potential of decreased business earnings, due to your absence.

There are ways to overcome these liquidity problems. Business-oriented tools can help reduce estate taxes and make the best use of the cash available. The most common business estate-planning tools are buy-sell agreements, Section 303 stock redemptions, Section 6166 estate tax deferrals and the qualified family-owned business exclusion. Business-owned life insurance can be used to fund each of these methods.

For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Cetera nor any of its representatives may give legal or tax advice.