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The Bryton Companies offer the following executive benefit plans:
An entity purchase buy-sell agreement is a plan that provides for an orderly change of ownership when a business partner or stockholder in a closely held corporation dies or becomes disabled. A funded buy-sell agreement can solve many of the problems arising at death or disability of a business owner such as:
Deferred Compensation gives a business a big edge when it comes to attracting and retaining key people. It can provide retirement benefits, on a selected basis, and more importantly over and above benefits provided in a traditional qualified retirement plan. Deferred Compensation is ideal for highly compensated individuals. The plan defers income from peak earning years to a future date, usually retirement, when the highly paid executives are likely to experience a decline in cash flow. Therefore, a well-designed Deferred Compensation Plan can level out an executive's compensation over the working and non-working years. An Executive Bonus plan provides for the purchase of tax-deductible life insurance for either a business owner or selected employees. The mechanics are as follows: the company agrees to bonus the employee the premium cost of the life insurance policy, and therefore, the premium is fully tax deductible to the company. Please note that in this arrangement, the bonus is fully taxable to the employee, however, many companies choose to also bonus the accompanying taxes due on the bonus. Key Person insurance is a plan to indemnify a business for the death of a key person and
the loss of that individual's skill and experience. This type of insurance can be used to
help replace lost profits; provide the funds to recruit, hire, and train a suitable
replacement; help assure customers, creditors, and employees of the business' continuity;
and pay a tax deductible death benefit to the employee's family. A Split Dollar Insurance plan is a method whereby an employer can help an employee
purchase large amounts of life insurance at little or no cost to the individual. In
essence, the premiums are shared by both employee and employer. For that promise, the
employee agrees contractually to reimburse the employer for the employer's share of the
premiums at some future date, usually retirement. The cost of such a plan can be minimal
or zero to the employer (only time value) and it allows the employer to attract and keep
key executives. A Section 303 stock redemption is a tax favored partial stock redemption available to
an estate or heir, provided: the value of the stock makes up more than 35% of the
deceased's adjusted gross income, and the shareholder whose stock is redeemed (estate or
heir) is responsible for paying death taxes and certain other death costs. One of the biggest problems arising at death is a liquidity problem. A Section 303 stock redemption allows your family to sell back to the corporation enough stock to meet final expenses. More importantly, since it is a partial redemption, your heirs can retain control of the business. But, unlike other partial stock redemptions, the money your heirs receive from a Section 303 redemption will not be taxed as a dividend - provided the dollar amount of the redemption is limited to the above expenses.
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