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JDH INSURANCE SERVICES
Often the issue of life insurance is either overlooked
or under evaluated. JDH Insurance was established by the
partners of Linkenheimer LLP to provide our clients the
opportunities to evaluate different life insurance
options and choose the plans that best suit their needs.
Our goal is to offer a service that we feel is extremely
valuable to our clients’ financial security. Whether you
are interested in an analysis of your buy/sell
agreement, estate planning, non-qualified deferred
compensation plan or a free insurance policy review,
John Jones and JDH Insurance Services can help you
determine your insurance needs and the most appropriate
product or plan for you.
The partners of Linkenheimer founded JDH Asset
Management with the hope of providing our clientele with
a valuable and personal investment experience. JDH has
expanded its services beyond wealth management to
include insurance services. John Jones, the managing
partner of Linkenheimer, is here to answer any questions
you might have. Whether you are designing a
non-qualified deferred compensation plan (NQDC),
looking for advice about estate planning, funding a
buy/sell agreement or a free policy review, JDH
Insurance Services can help you find the right answer.
Give us a call today or send us an e-mail at
john@linkcpa.com
Estate Planning
Estate planning is something that all individuals
and familes are faced with at some point in their
lives. But what many don't understand is that like
life insurance, your needs and situations are always
changing. Estate planning is the same way, and
getting your plans reviewed by your Linkenheimer CPA
could save you time, money and stress in the long
run.
Selective Executive Benefit Planning
In today’s marketplace, many employers are looking
for ways to attract, reward and maintain their top
management group of employees. The competition for top
quality management is fierce and employers must be
willing to add “custom designed” executive benefits. One
of these benefits is “non-qualified deferred
compensation.”
With more restrictive tax laws governing traditional
qualified pension plans, it is close to impossible for
employers to provide compensation packages for select
executives that are equitable to their rank and file
employees.
Thus, implementation of a non-qualified deferred
compensation benefit plan for selective key executives
may be an excellent addition to the selective executive
benefit package.
Consider the following non-qualified deferred
compensation plan attributes:
-To avoid major ERISA requirements, non-qualified
plans must be for a select group of management or highly
compensated employees.
-Deferral plans must be set in place before the
compensation is earned.
-Amounts are deductible to the employer when paid to the
employee and the income is taxable to the employee when
received.
-Any amounts of money used to informally finance the
benefits promised to participants must be reachable by
the business’s creditors.
-Distributions are not subject to the various penalties,
restrictions and requirements that exist in qualified
retirement plans.
-A life insurance contract can be used to informally
finance the agreement and provide the employer a method
of recovering some or all of the cost associated with
the plan.
-We have designed and written many non-qualified
deferred compensation plans and executive bonus
programs. Let us know if you’d like to talk about your
executive compensation needs.
Why Affluent Individuals Acquire Life
Insurance
If you had a choice to pass on
your estate to your heirs and favorite charities or the
IRS, what would you choose? And do you have a choice?
The answer is yes. You have a very important choice. The
wealthy have a great deal to lose when it comes to
estate planning and life insurance. Your estate is a
tangible representation of a lifetime of hard work and
achievement. It’s part of a legacy you leave behind and
is something that should be passed on to your loved
ones. Everyone pays the price for success, not just the
breadwinner. When you die, why compound the problem by
having to pay estate transfer tax at 45-55% rates? Why
should your dreams die when you die, if there is an
option?
Well there is an answer and there
is an option, it’s life insurance. And while many
individuals currently have a life insurance policy, what
they fail to realize is that it may not be adequate. JDH
Insurance offers a free policy review to help you
determine your real life insurance needs. Even if you
had adequate cash available to pay estate taxes, it
would not make sense to use it if you could discount the
estate tax liability by 80% or more using life
insurance. Why pay $1,000,000 if you only need to pay
$200,000? Wouldn’t you rather pay wholesale than retail?
The current tax law enables a
decedent to leave his or her entire estate to the
surviving spouse without incurring any estate tax. As a
result of the “sucker play,” as it has been labeled by
several top estate planning attorneys, many wealthy
individuals have been lulled into a false sense of
security. The tax is merely deferred until the death of
the surviving spouse. The tax must still be paid. Tax
laws and other related issues are always hard to sort
out. That is why R. John Jones, a CPA and licensed
insurance broker is available to help you make sense of
the sometimes confusing issues related to insurance and
tax laws.
Potential Benefits of a
Buy- Sell Agreements
-Provides a ready market for
the shares if the owner’s estate wants to sell the
stock
after the owner’s death.
-Sets a price for the shares. In the right
circumstances, it also fixes the value for
estate tax purposes.
-Allows a stable continuation of the business by
preventing unnecessary disagreements
caused by new, unwanted owners.
-Life insurance is an efficient means of funding the
purchase of a buy/sell in the event of death.
-Disability insurance can be used to fund the
disability provision of a buy-sell agreement.
For more information on any
of the services listed above or to simply ask a
question, please e-mail
John Jones
