Client Profile:
A rapidly growing technology firm valued near $80 million needed protection against the loss of a key founder and a plan to fund future ownership transitions.
The Challenge:
Existing term policies offered only temporary coverage. A partner’s death or disability would have left the business scrambling for liquidity, potentially forcing outside investors or discounted equity sales. The firm wanted a long-term, tax-efficient solution that would protect enterprise value and support succession.
Our Solution:
RM Legacy Group structured a corporate-owned IUL (COLI) strategy with dual objectives:
- Key-Person Protection: Provide immediate liquidity to offset the loss of leadership.
- Buy-Sell Funding: Build an accumulating cash-value reserve to finance future partner redemptions.
Premiums were aligned with revenue cycles and structured for corporate deductibility where appropriate. The IUL’s accumulation account created a stable, tax-advantaged balance-sheet asset, while the death benefit ensured continuity.
Outcome
The implemented plan established a tax-free $15 million liquidity pool positioned to fund estate equalization immediately upon death — without any disruption to the family businesses or real-estate portfolio. The two active heirs will retain full control and continuity of the enterprise, while the third heir will receive an equivalent legacy in liquid, tax-free proceeds.
In addition to resolving inheritance disparities, the structure reduced projected estate tax liability by more than $6 million, created intergenerational liquidity for future estate settlements, and aligned with the family’s long-term governance model. What began as a potential source of conflict became a strategic unification of wealth and purpose, preserving both relationships and enterprise value for generations to come.
Precision. Purpose. Performance.
At RM Legacy Group, every strategy is engineered with intent — turning ordinary designs into extraordinary outcomes through disciplined structure, intelligent design, and lifelong stewardship.