August 1999
The Director - Features
Second-to-die Insurance
A safety net in family succession planning
When the 1986 Tax Code was implemented, it posed a significant danger to family owned businesses wishing to pass their business to the next generation. This prompted individuals to find innovative techniques using second-to-die insurance to achieve family objectives. This kind of insurance insures two people, but pays only on the death of the last to die.
If you are a funeral home owner exploring succession options, be sure to read Second-to-die Insurance—A safety net in family succession planning. It explains how second-to-die insurance serves a valid purpose in family succession, estate-tax reduction or in a business retrieval. It highlights creative techniques using second-to-die insurance including family business buy-outs, family limited partnerships, charitable remainder trusts and charitable family limited partnerships.
The article was written by Dale Rollings, president of Rollings & Associates, P.C., a merger/acquisition/succession-planning firm specializing in funeral home and cemetery transactions for more than 30 years.
