6190 Powers Ferry Road, Suite 505 Atlanta, GA 30339
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Address your client’s immediate and future needs
Farmers are business owners who may look for help with:
Many farmers are concerned with keeping the family farm in the family. But these business owners also need to consider other issues such as retirement, long-term care, estate planning, business continuity and business succession.
BOLD sales support
Contact the Fortress Brokerage Solutions Advanced Sales Team today.
(678)322-3040
Info@fortressbrokerage.comCurrent state assessment
To begin the BOLD process, you need to identify the farmer’s stakeholders and assess their current situation, as well as outline their goals and priorities. From there, you can begin by focusing on their top priority — while gathering more information about their other priorities.
Identify stakeholders
Using the Farmers and Ranchers BOLD questionnaire, engage your farm client about who will design and implement the BOLD strategy, as well as the stakeholders who will be impacted.
What parties are involved?
Just like small business owners, farmers have both business and personal stakeholders:
| Goal | Stakeholders | Applicable BOLD strategies |
|---|---|---|
| Adequate funding for retirement | Farmer and family | Retirement/stepping back from the operation |
| Paying for long-term care needs | Farmer and family | Long-term care |
| Efficiently passing on assets | Farmer and family | Estate planning |
| Protecting the business from the loss of a key employee | Business, business owner, next generation farmer | Estate Key person protection |
| Transfer the business to others at a fair price | Business, business owner, next generation farmer | Business succession |
Next steps
Once you’ve assessed your client’s needs, craft a recommendation and design a strategy that addresses their concerns and priorities.
Take BOLD action
Key Resources
Additional resources for farm business succession
Learn how to use BOLD with clients
Your business owner clients need life-stage specific tools. We’ll help you find the right solution.
View the step-by-step processLife insurance products contain fees, such as mortality and expense charges, (which may increase over time) and may contain restrictions, such as surrender periods.
Please keep in mind that the primary reason for purchasing life insurance is the death benefit.
Additional agreements may be available. Agreements may be subject to additional costs and restrictions. Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements.
Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender and will reduce both the surrender value and death benefit. Withdrawals may be subject to taxation within the first fifteen years of the contract. Clients should consult their tax advisor when considering taking a policy loan or withdrawal.
The Policy Design chosen may impact the tax status of the policy. If too much premium is paid, the policy could become a modified endowment contract (MEC). Distributions from a MEC may be taxable and if the taxpayer is under the age of 59 ½ may also be subject to an additional 10% penalty tax.
An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Please consult a tax advisor for specific information. There are charges and expenses associated with annuities, such as surrender charges (deferred sales charges) for early withdrawals.
This information may contain a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances.
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