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:
- Immediate balance sheet enhancement
- Increased yield relatively to similarly liquid corporate assets
- Tax-free access to yield
- Cost-recovery at plan maturity
