Business Debt Protection
These days most loans that business owners take out come with a hidden time bomb.
The time bomb sits there within the reams of papers that you signed when you took out the loan. It is called a personal guarantee. It sits there waiting for a trigger event to cause it to explode in your estates face.
Most people wrongly believe that when they die, the personal guarantee is forgiven by the lender. This is certainly not the case. The personal guarantee survives and is simply passed to your estate. Your estate is your spouse and children.
A properly structured debt protection strategy provides your estate with the money needed to pay back the loan and thus releasing the personal guarantee. Did I mention that the personal guarantee is usually the home your family lives in.
If you think the banks will allow your wife to pay them back when they are ready, think again. Death and disablement is a trigger event within most loan documents and as such, it allows the forced sale of the assets that guarantee the loans-in most cases this is your home.
Keyman Financial Services can help determine the policies needed to cover these events and make sure that the loans can be paid out and the personal guarantees removed.