You built a $30M business. Two of your five children run it. How do you pass it on without forcing a sale, creating conflict, or leaving three of your children behind?
Talk Through Your Family's PlanThe question every parent dreads: how do I treat my children equally when only some of them work in the business? Splitting a $30M company five ways forces the operating heirs to buy out their siblings, take on debt, or hand partial ownership to family members with no role in the company. That can damage the business and the family at the same time.
A $30M family business and five children. Two of them, Jason and Megan, run the company. Three, Tyler, Brittany, and Lauren, have built lives outside it.
Ownership of the $30M business passes to Jason and Megan, the children actively running it. No siblings to buy out, no outside owners at the table.
A $30M second-to-die policy, held in an ILIT, pays income-tax-free to the three non-operating children. Every child receives equal economic value.
Transfer the business to the children who run it, and place survivorship life insurance of equal value for the children who don't. Every child gets a fair share, with no forced buyouts.
Why Survivorship (Second-to-Die) Insurance?
A survivorship policy covers two lives and pays at the second death, exactly when the estate is settled. Because the benefit is deferred, premiums are much lower than two individual policies with the same face value.
| Death benefit needed | $30M | equal to the business value |
| Approx. annual premium | $180K–$240K | about 0.6–0.8% of the benefit per year |
| Premiums over 20 years | ~$4.2M | estimated total |
| Benefit received | $30M | income-tax-free |
| Leverage | ~7 : 1 | benefit compared to cost |
Premiums vary by age, health, and carrier. For illustration purposes only.
Giving each child equal economic value when the assets themselves cannot be split evenly. The business goes to the children who run it, and life insurance provides matching value to the children who do not.
A survivorship policy pays at the second death, which is when the estate is actually settled. Because the payout is deferred, the premium is typically much lower than two separate policies with the same total coverage.
An irrevocable life insurance trust keeps the death benefit out of the taxable estate, so the money meant for the non-operating children is not reduced by estate tax on its way to them.
The plan is reviewed every year. As the business value changes, coverage can be adjusted so the children outside the business still receive equal value.
No. We work alongside your estate attorney and CPA. They draft the documents and the trust, and we design and place the insurance that funds the plan.
A confidential, no-obligation discovery conversation. We educate first. We advise always. We never pressure.
Schedule a Discovery Conversation