How do I pass my family business to my kids without it falling apart or getting hit with huge taxes?

Passing a family business requires both a management succession plan and a tax strategy. On the management side, you need to identify and prepare your successor, formalize roles, and create a transition timeline. On the tax side, strategies like lifetime gifting of business interests, valuation discounts for minority and lack-of-marketability interests, installment sales, and proper entity structuring can significantly reduce the tax burden on the transfer.

Income replacement, debt protection, and legacy planning

Life Insurance

Q: Do I need life insurance if I have an estate plan?

Life insurance and an estate plan serve different but complementary purposes. Your estate plan determines how your assets are distributed and who makes decisions on your behalf. Life insurance provides immediate cash to your family after your death, covering expenses like mortgage payments, debts, lost income, and daily living costs. Most Arizona families benefit from having both in place, because estate assets can take weeks or months to become available even with a trust.

Q: How does life insurance work with a Living Trust?

You can name your Living Trust as the beneficiary of your life insurance policy. When you do this, the insurance proceeds are paid into the trust after your death and distributed according to your trust instructions. This approach gives you control over how and when the money reaches your beneficiaries. It is especially useful for families with minor children, blended families, or anyone who wants to spread distributions over time rather than giving a lump sum.

Q: How does estate planning work for blended families and second marriages?

In second marriages, the phrase 'we will figure it out later' is how children from a first marriage unintentionally get left out. Blended families require intentional planning because the default legal rules often do not match your actual wishes. If everything goes outright to a surviving spouse, there is no guarantee those assets will eventually pass to your children from a previous marriage. Without structure, inheritance can shift between families entirely. A properly designed trust can provide income and security for a surviving spouse while protecting the principal for your children. It can clearly outline distribution terms so everyone knows what to expect. This is not about mistrust between spouses. It is about clarity. And clarity prevents resentment later. Common tools for blended family planning include a marital trust (also called an A-B trust), which allows the surviving spouse to benefit from the assets during their lifetime while preserving the principal for your children. Life insurance can also provide an immediate, separate inheritance for children outside of the marital estate. If you are in a blended family and have not reviewed your estate structure, this is an important step to take proactively. Your estate planning attorney can help design a plan that honors all of your relationships.

Q: My business partner and I need a plan for what happens if one of us dies. What is a buy-sell agreement?

A buy-sell agreement is a legally binding contract between business owners that determines what happens to an owner's share of the business when a triggering event occurs, such as death, disability, or retirement. It sets the terms, price, and funding method for the buyout in advance, so your family gets fair value and your surviving partner keeps the business running.

Life insurance is not just about leaving money behind. It replaces lost income, pays off debts, provides estate liquidity, and ensures your family keeps the life you built for them.

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More Than a Death Benefit

Most people think of life insurance as a death benefit. It solves much broader problems. Life insurance replaces lost income, eliminates debts, provides estate liquidity, and transfers wealth tax-efficiently. The general guideline is 10 to 15 times annual income, but the right number depends on your debts, your family's needs, and how many years of income you want to replace.

Life insurance is not about leaving money behind. It is about solving the specific financial problems your family will face if you are no longer there to solve them yourself.

What the Right Policy Actually Solves

We shop multiple carriers, coordinate coverage with your estate plan, and confirm every piece works together. Most engagements address one or more of the following.

Income replacement, covering the years of paychecks your family would lose if something happened to you
Debt elimination, paying off the mortgage, car loans, and credit cards so survivors keep what you built
Estate liquidity, providing cash so heirs do not have to sell property or business interests to pay taxes
ILIT-structured wealth transfer, using an irrevocable life insurance trust to pass wealth outside the taxable estate
Business protection, funding buy-sell agreements and key-person coverage

Why It Matters

Without coverage, your family inherits the bills. Mortgage payments still come due. Lenders still want to be paid. Estate costs still need to be settled. Life insurance is what turns a financial catastrophe into a manageable transition. The earlier the coverage is placed, the cheaper and more flexible it tends to be.

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Life insurance is not about leaving money behind. It is about solving the specific financial problems your family will face if you are no longer there to solve them yourself.

Coverage Makes the Difference When...

Anyone depends on your income or your assets.

Breadwinners. If your family depends on your paycheck, life insurance replaces that income so they can maintain their standard of living.
Homeowners with a Mortgage. Life insurance can pay off the mortgage so your family keeps the home without the monthly payment.
Business Owners. Life insurance protects your business, funds buy-sell agreements, and ensures your partners or family can continue operations.
People with Estate Tax Exposure. If your estate exceeds the federal exemption, life insurance provides the cash to pay estate taxes without liquidating assets.

Who You Work With

Licensed, Credentialed, and on Your Side

Your plan is only as strong as the people behind it. The advisors below are the licensed agents and consultants who design, place, and service your coverage.

Chris Cohan
CEO | ChFC®, RMA®
ChFC® · RMA® · Series 6, 63, 65 · AZ Life & Health
With over 25 years in financial services and deep Arizona roots, Chris takes a steady, thoughtful approach to wealth and estate planning. As a Chartered Financial Consultant® (ChFC®) and Retirement Management Advisor® (RMA®), he helps individuals and families build, protect, and transfer wealth through personalized strategies.
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Stephen Levin
Tucson Director of Risk Management | Senior Planning Consultant | Licensed Insurance Agent
Licensed Insurance Agent
Stephen brings a background in risk management to his role at RJP, where he helps Tucson-area families protect what they've worked so hard to build. Before transitioning into estate and insurance planning, he spent years in risk-management leadership, learning how to spot vulnerabilities and build strategies that hold up when it matters most.
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Chris Zajdzinski
Wealth Management Advisor, Fiduciary | Licensed Insurance Agent
CLU · Series 6, 63, 65 · Fiduciary · AZ Life & Health
With more than 30 years of experience in financial services, Chris is dedicated to helping individuals and families make informed, confident decisions about their financial future. As a Wealth Management Advisor and Fiduciary, he works closely with clients to understand their concerns and offers guidance tailored to their unique needs and priorities. His experience includes retirement income planning, risk management, and estate and legacy planning.
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Ron Tallou
Wealth Management Advisor, Fiduciary
Series 6, 63, 65 · Licensed Insurance Agent
Born and raised in Michigan, Ron developed a strong work ethic and deep appreciation for community values early in life. These formative experiences ignited a lifelong passion for wealth management, ultimately shaping his career in finance.
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Thomas Fryar
Senior Planning Consultant | Licensed Insurance Agent
Licensed Insurance Agent
As a financial services professional since 1978, Thomas has developed risk-managed retirement income and estate-transfer strategies that help clients protect lifetime cash flow, provide for surviving spouses or special-needs family members, and pass wealth efficiently across generations. His four decades in life insurance and planning inform a disciplined, education-driven approach to protecting family assets.
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Dimitri Redwood
Wealth Management Advisor, Fiduciary | Licensed Insurance Agent
Series 7 · Series 6 · Series 63 · Series 65 · Fiduciary · Licensed Insurance Agent
Dimitri works with Tucson-area families on the financial side of estate planning, helping clients think through how to protect what they've built and pass it on the way they want. With six years of experience as an advisor, including time at an investment firm, he brings a practical perspective to every conversation. He takes time to listen first, then walks each family through their options in plain language so they can make decisions with confidence.
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Client Testimonials

(200+ reviews)

Joyce Lanier

We went to RJP to do a Trust, they walked us through each step. We never felt rushed, they answered all our questions. We will definitely recommend RJP to others. Thank you for helping us get through ...

Tucson Office

Peter Young

Scottsdale Office

rudy ligrano

So far it’s been great. It seems they’ve taken care of everything, but some things that I have to take care of myself people there are great will recommend them to someone else.

Scottsdale Office

Donna Jimenez

Very helpful

Scottsdale Office

Tim Minard

Our initial meeting was done very effectively. Very thorough but efficient as well. RJP definitely makes the complex very easy to inderstand

Scottsdale Office

Cynthia West

Scottsdale Office

Tanya Hofmeister

Spoke with Gabe..very knowledgeable and helpful. Thank you so much.

Tucson Office

Christina

I was referred to RJP, and I’m happy I was! Brian was an awesome help! He made everything easy to understand and was very knowledgeable! Thanks to Brett for helped finalize everything and make sure we...

Scottsdale Office

Christina Owens

Scottsdale Office

Susie Garcia

Brian was great. Answered all questions and made the process simple.

Scottsdale Office

Deb Charlson

Met with Tom Fryar today and left with a great feeling of accomplishment. He helped tremendously with our trust and also got me out of a terrible financial plan and into one where I can actually mak...

Tucson Office

KATHLEEN LASCH

Steven did an awesome job . Put everything together making it easy for .myself and beneficiaries. Very nice to work with.

Tucson Office

Common Life Insurance Questions

Answers to the questions Arizona families ask most about life insurance.

Do I need life insurance if I have an estate plan?

Life insurance and an estate plan serve different but related purposes. Most Arizona families benefit from having both. Your estate plan decides how your assets are handed out and who makes choices for you. Life insurance gives something your estate plan alone cannot: instant cash for your family right when they need...

Read full answer

How does life insurance work with a Living Trust?

You can name your Living Trust as the beneficiary (the person or entity that receives the funds) of your life insurance policy. When you do this, the insurance money is paid into the trust after your death. Your successor trustee then hands out the funds based on the rules you set in your trust. This gives you more...

Read full answer

How does estate planning work for blended families and second marriages?

In second marriages, the phrase "we will figure it out later" is how children from past marriages get left out. Estate planning for blended families takes more thought than planning for a first marriage. The default legal rules almost never match what blended families truly want. Why Blended Families Face Unique...

Read full answer

My business partner and I need a plan for what happens if one of us dies. What is a buy-sell agreement?

A buy-sell agreement keeps your business safe if a partner dies, gets sick, or leaves. Without one, your partner's spouse, kids, or a probate court could end up as your new co-owner. A buy-sell deal spells out what happens to each owner's share. It sets the price, the buyer, and how the buyout gets paid. How a...

Read full answer

View all frequently asked questions

Life Insurance

More Than a Death Benefit

What the Right Policy Actually Solves

Why It Matters

Coverage Makes the Difference When...

Licensed, Credentialed, and on Your Side

Client Testimonials

Common Life Insurance Questions

Do I need life insurance if I have an estate plan?

How does life insurance work with a Living Trust?

How does estate planning work for blended families and second marriages?

My business partner and I need a plan for what happens if one of us dies. What is a buy-sell agreement?

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