Along with both tax and financing benefits afforded the seller, a well-structured succession plan may help:

• Provide necessary financing to fund owner's transition out of the business
• Supplement retirement planning on a tax-preferential basis
• Lower the tax cost to an owner transitioning out of the business
• Provide business owners with tax-free death benefits for their family
• Loan proceeds paid into life insurance grow tax deferred
• Allow for interest payments on loan to be tax deductible*
• Premium financed life insurance purchased with loan proceeds may be an exempt asset under state law**

* Please consult your tax advisor regarding deductibility of loan interest for your situation.
** Please consult with your legal advisor to determine if life insurance and/or annuity is an exempt asset under your state law.