When you are the owner of a business in partnership with others the matter of succession is something to consider when you are planning your estate. The dynamic that exists between partners in a privately owned business is unique. When one of them passes away or leaves for some other reason the remaining partners are usually going to want to retain control of the business.

For example, if you leave your share to your family and none of your heirs has any interest in helping run the business, what do they do with their inheritance? They would probably sell it and the buyer’s vision may not be resonant with the remaining partners. Perhaps worse yet, a well meaning family member may want to take your place as an active partner without the proper experience and expertise to the detriment of the business.

These scenarios can be avoided through the execution of a buy-sell agreement. There are two primary ways that this is done, and the first one we will look at is the cross purchase plan. To employ this strategy each partner takes out a life insurance policy on every other, the total of which equals the value of a full partnership share. Upon the death of one partner the proceeds from the insurance policies are used to buy the deceased partner’s share from his or her estate.

The other method is the entity plan. With this succession plan the business entity itself purchases life insurance on each partner. Should one of them pass away, the policy proceeds are used to purchase that ownership share from the heirs of the deceased.

It should be mentioned that insurance proceeds are not the only way to facilitate a buy-sell agreement. The purchase of the departing co-owner’s share from his or her estate can be done through a cash buyout with saving accumulated by the business for succession purposes or with funds acquired through a business loan.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

When you graduate from school and land your first job, you will usually spend a couple of days in orientation sessions. One of these invariably involves the benefits that your new company offers its employees, and in a very real sense this is the day that you begin to plan your estate. When they get around to addressing the company’s life insurance offerings, it may be the first time you really give your mortality any serious thought. However, it is a good introduction to the responsibilities that mature adults have to their loved ones. And the fact is that when you sign up for that first life insurance policy, you do indeed have a fledgling estate plan in place.

Life insurance policies provide cash payouts to your named beneficiary or beneficiaries at the time of your death, and though they are useful for everyone, they are especially important for people who are still working. Let’s say you have a family with children still in the home and you are enjoying a particular quality of life. You have to ask yourself where your family would be financially if you were to pass on unexpectedly. Most families would not be able to weather that storm and retain their quality of life. This is why it is important to evaluate the financial void that would exist in the event of your death and make sure that you have enough life insurance to provide for your family in any eventuality.

For those who have reached retirement age, life insurance policies can provide liquidity that can be used to cover funerary expenses and fees associated with the administration of your estate. They also provide a tax-free way to place cash inheritances directly into the hands of your loved ones.

Life insurance policies are a staple of long term estate planning, and it is advisable to review your coverage often as you enter into different stages of life.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Retiring can be tricky when it comes to health insurance. If you have group coverage through your employer, then dropping that coverage may also leave the rest of your family uninsured.

• Buying Health Insurance After 55 – If you need to purchase individual health insurance after you are 55 years old, you should be aware that insurance companies will base the premiums on the age of the oldest family member, thus you’re going to pay higher premiums. The best way to buy insurance is to put it in the name of the younger spouse; when the older spouse reaches 65 and applies for Medicare, the younger spouse will still be covered.

• High Deductible Plans – Health insurance plans with a high deductible will have lower premiums so that you have less coming out of your pocket. The best time to buy one of these plans is before you retire. You will still have your employer-sponsored insurance for the time being, and it won’t be as difficult to quality for health insurance if you already have a policy.

• State High Risk Insurance – If you have been denied insurance, or if the premiums are simply too high because of your age, you might want to think of purchasing your insurance through state sponsored high-risk insurance pools.

If you are considered uninsurable and are not old enough to qualify for Medicare, there are a few options open to you. There are state programs that can assist you with medical bills, plus there are some programs in place for discount prescription medications. In addition, many clinics offer a sliding scale for their services to help make healthcare more affordable for people that do not have health insurance.

Being without health insurance when you are older is unquestionably risky. Not only can medical bills stack up quickly, but also you are more likely to have health problems as you age. For those that have no options open to them for health insurance, it might be a good idea to continue working until you are old enough to qualify for Medicare.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.