You sold your business
When the new owner takes over as executives or owners they are not protected for non qualified benefit packages. They could be gutted or removed. Qualified plans can continue under the Dept of labor rulings. How can you keep this from happening to your business or corp?
The answer is a Rabbi [Trust] Before the letter of intent or purchase a owner and executives can emphasize specific language to restrict the acquiring company ability to make modifications for non qualified benefits;
You can require third party administrators on any disputed benefits. Life insurance long term care plans that must be paid up. Disability plans and continued health benefits after the business has transfered to the new owners under a structured trust plan.
Do not use a commercial bank to act as trustee. The bank is in a awkward position while managing both sides of interest new and old owners
Locking down the trust once a letter of intent is received can protect your interests.
Tags: You sold the business
