Old-Case Study: 21 Lawyers Buy-Out

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Case Study: 21 Lawyers Buy-Out Funding Arrangement

Original Plan:

  • Fund share-holder partner buy-out as a result of retirement, illness, or death from corporate savings and cash flow.

Alternative Plan Implemented:

  • $6,200,000 of guaranteed-issue institutionally-priced Corporately-Owned Life Insurance (COLI) insuring 21 attorney shareholder partners
  • For your review: NAIC compliance composite illustration for all 21 plan participants

Benefits to Law Firm:

  1. Immediate balance sheet enhancement
  2. Increased yield relatively to similarly liquid corporate assets
  3. Tax-free access to yield
  4. Cost-recovery at plan maturity