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The past few months of COVID-19 related events have had an impact on Credit Union-Owned Life Insurance (CUOLI). While a CUOLI policy helps mitigate some of the risk in the open market, the decline in interest rates, unstable stock market conditions and the decline in loan demand highlight that this is the perfect time to review and reassess CUOLI policies.

As recent events have proven, it is a best practice for nonprofit organizations to keep liquid reserves on their balance sheets for unexpected emergencies and opportunities. These reserves are typically held in cash at the bank, or invested in CDs, U.S. Treasurys, or short-term bonds.

Credit unions often invest in specialized, institutionally-priced permanent life insurance policies on the lives of their executives for up to 25% of net worth, in most jurisdictions. Permanent life insurance has both a cash value and a death benefit.

By now, anyone who has been paying attention knows that the 2017 Tax Act continues to create significant ramifications for nonprofit organizations, including credit unions.

Nonprofit leaders know that the road to making a difference is long, bumpy and difficult. Some would even say running a nonprofit can be more challenging than starting a typical business. Although nonprofits share many of the same obstacles as for-profit businesses, it’s important to address them from a unique perspective.

Estate planning often presents challenges for family business owners as they strive to plan for business continuity while simultaneously generating accessible wealth for their families. Ensuring their companies and estates have sufficient liquidity to meet their liabilities in the face of increasing tax rates and limited borrowing availability can place additional pressure on these owners.

Clients may feel uncomfortable making irrevocable gifts, especially if they feel that they might need the money in the future or if it turns out there is no estate tax. Fortunately, there is a planning solution that maximizes flexibility and control for peace of mind in just about any situation...

Retaining key staff – those crucial to your organization’s ongoing success, even survival – is a critical, yet over-looked, aspect of transferring ownership of a company. Losing top employees can disrupt operations, impact current and future revenue and often causes a loss of morale, thereby lowering the appeal and value of your business...

Change is inevitable. At some point, every credit union must deal with the issue of succession, whether planned or due to unforeseen circumstances. Some plan for it in advance, while credit unions that find themselves unprepared may face chaos and […]