Executive Benefit Programs
If you are an owner, partner or senior manager of an enterprise, you typically need a specialized program to address your financial needs. These programs can also be an integral part of a business succession plan allowing for a guaranteed market for a business interest in the event of your death, disability or retirement.
Executive benefit programs are designed to “carve out” this key employee group to receive special benefits, as well as to retain and reward key employees. Executive benefit programs may be structured to address performance targets, longevity and commitment to success. Often, we can involve key employee owners as well as non-owners.
While executive benefit programs can take many forms, some of the more useful components may include:
This is a life insurance ownership strategy that provides corporate and personal protection, as well as long-term tax deferred accumulation. It is a specialized ownership structure for included policies, allowing the key elements to be separated based upon their purpose and objective. Recent IRS rulings have codified our handling of these structures, allowing us a clear vision for implementation and application.
Corporate owned life insurance programs are typically handled with some element of Split Dollar ownership.
Supplemental Executive Retirement Plan (SERP)
SERP is designed to address the retirement planning limitations for highly compensated executives. SERP programs allow us to select a focused and specialized group of executives around whom we design a deliberately discriminatory savings program.
More often, SERP programs are applied to the needs of businesses containing a definitive managment structure. The benefits of the program for the individual are a significant enhancement to their retirement income pool. The corporation retains the loyalty and dedication of its key employees through the use of strategic contribution schedules and vesting.
For employees limited by their corporate sponsored retirement program, deferred compensation provides an opportunity to expand their savings.
Through the use of these programs, we can provide additional tax-deferred retirement savings. The investment vehicles for deferred compensation vary from simple to complex depending upon the nature of the program, its participants, and objectives. Finally, protection from creditors is a key concern in the creation of these plans.
We will be happy to discuss these and other executive benefit programs with you and your financial, legal and tax advisors. Please contact us for a confidential consultation, without cost or obligation.
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