Filed Under:Life Insurance, Life Planning Strategies

ESOPs: a plan to help business owners avoid "taxmageddon"

Photo credit: KROMKRATHOG
Photo credit: KROMKRATHOG

The potential massive tax increases looming in 2013 will be felt by many taxpayers, but they could take an especially hard toll on business owner clients who have plans to sell.  With nearly 80 percent of their net worth tied up in the value of the enterprise1, such business owners could lose a significant amount of assets which they have spent a lifetime amassing. 

On the horizon

The Opportunity for Financial Professionals

When the owner sells to the ESOP, the transaction can generate significant assets—assets that were once tied up in the business but now are available to be invested.  The financial professional who brings the ESOP idea to the owner is in the ideal position to assist the owner in managing the assets.  ESOP formation can also create new estate planning, life and disability insurance needs and other employee benefit opportunities—all of which can help financial professionals grow their businesses. 

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Nichole Morford

Nichole Morford
Managing Editor

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