Planning with Life Insurance Limited Liability Companies

November 10, 2009

Smith and Condeni LLP releases new article on planning with Life Insurance Limited Liability Companies.

 This article discusses the benefits, design and application of a specially designed Limited Liability Company to own life insurance that is primarily used to fund Buy Sell agreements between business owners. This is a planning technique developed by the attorneys at Smith and Condeni. We recognized that there are many benefits to separating life insurance ownership from clients' operating business. The Life Insurance Limited Liability Company (LILLC) is a separate entity that operates independently from the underlying business and is specifically designed to own insurance contracts on the lives of the business owners. The owners who are the parties to the Buy Sell agreement are also the Members of the LILLC. The following is a discussion of the major planning aspects of the LILLC. 

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