{"id":4573,"date":"2026-10-24T02:54:16","date_gmt":"2026-10-24T02:54:16","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-owned-by-trust-or-holding-company\/"},"modified":"2026-10-29T23:22:00","modified_gmt":"2026-10-29T23:22:00","slug":"key-person-insurance-owned-by-trust-or-holding-company","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-owned-by-trust-or-holding-company\/","title":{"rendered":"Key Person Policy Owned by Holding Company | NR CPAs"},"content":{"rendered":"\n<div class=\"wp-block-cover alignfull is-dark chg-hero\" style=\"min-height:460px;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim-60 has-background-dim wp-block-cover__gradient-background has-background-gradient\" style=\"background:linear-gradient(90deg,rgba(32,36,46,1) 0%,rgba(32,36,46,1) 55%,rgba(32,36,46,0.7) 100%)\"><\/span><img class=\"wp-block-cover__image-background wp-image-4570\" alt=\"A senior operations manager reviews production schedules and equipment logs at a workstation in a manufacturing facility, with colleagues working in\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-8.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-8-150x150.jpg 150w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-8-300x167.jpg 300w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-8-768x429.jpg 768w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-8-1024x572.jpg 1024w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-8.jpg 1376w\" sizes=\"(max-width: 825px) 825px, 100vw\" fetchpriority=\"high\" decoding=\"async\"\/><div class=\"wp-block-cover__inner-container has-global-padding is-layout-constrained wp-block-cover-is-layout-constrained\">\n<p class=\"chg-eyebrow has-base-color has-text-color wp-block-paragraph\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Key Person Insurance | Florida<\/p><h1 class=\"wp-block-heading has-base-color has-text-color\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Protect the Business Your Family Depends On<\/h1><p class=\"has-base-color has-text-color wp-block-paragraph\" style=\"font-size:clamp(0.875rem, 0.875rem + ((1vw - 0.2rem) * 0.625), 1.25rem);text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Key person insurance can help a holding company cover the financial effect of losing an owner or key person. NR CPAs &amp; Business Advisors reviews the policy, the ownership structure and the business agreements together, with a CPA&#x27;s view of tax and cash flow.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today to schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today to schedule a coverage review<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:0.85rem;color:#6b7280;margin-bottom:1.5rem\">By Nischay Rawal \u00b7 Published October 23, 2026<\/p>\n\n<article lang=\"en\">\n\n\n<p>A holding company or a family trust can own a key person policy in many structures. The right choice turns on who would lose money if the key person died, who pays the premiums and who should receive the death benefit. NR CPAs &amp; Business Advisors is a Miami CPA firm. This guide explains how those roles fit together for business owners in Florida and across the United States.<\/p>\n<h2>Short answer: who can own a key person policy<\/h2>\n<p>A holding company or a family trust can own a key person policy when the structure supports it. Four roles make this work, and they don&#8217;t have to sit with the same party.<\/p>\n<ul>\n<li><strong>Policy owner:<\/strong> the party that controls the policy.<\/li>\n<li><strong>Insured person:<\/strong> the key employee, partner or owner whose life is covered.<\/li>\n<li><strong>Premium payer:<\/strong> the party that pays the premiums each year.<\/li>\n<li><strong>Beneficiary:<\/strong> the party that receives the death benefit.<\/li>\n<\/ul>\n<p>Key person coverage is meant to protect a business. The <a href=\"https:\/\/www.iii.org\/publication\/insuring-your-business-small-business-owners-guide-to-insurance\/specific-coverages\/life-insurance-for-key-employees\">Insurance Information Institute<\/a> explains that it compensates a business for financial losses caused by a key employee&#8217;s death or disability. Florida law lets a business entity insure certain key people, but only with that person&#8217;s written consent given before the policy is bought (<a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404<\/a>). The right answer depends on the facts. Those facts include the ownership chart, the business agreements and the owner&#8217;s goals.<\/p>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/two-women-stand-at-a-whiteboard-in-an-office-discussing-a-pr-photo.jpg\" alt=\"Two women stand at a whiteboard in an office, discussing a presentation.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Not sure what your next step is?<\/h3><p class=\"wp-block-paragraph\">Talk it through with our team &#8212; we can walk you through how a situation like yours is usually handled and what your options are.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n<h2>What a holding company and a family trust each do<\/h2>\n<p>A holding company owns shares or interests in one or more operating companies. It is a separate legal entity from those companies. A family trust holds property for named beneficiaries under a written trust agreement, and a trustee manages that property for them.<\/p>\n<p>Owners look at each for different reasons. A holding company can keep ownership in one place when operating companies change. A family trust can connect the policy to the family&#8217;s estate plan.<\/p>\n<p>Neither one works on its own. The entity&#8217;s governing documents must match the plan. In Florida, except as otherwise provided in subsections (3) and (4) of <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0605\/Sections\/0605.0105.html\">Fla. Stat. \u00a7 605.0105<\/a>, an LLC&#8217;s operating agreement governs relations among its members and between the members and the company. The statute&#8217;s rules fill in the matters the agreement does not address (<a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0605\/Sections\/0605.0105.html\">Fla. Stat. \u00a7 605.0105<\/a>). A trust&#8217;s terms should also make the trustee&#8217;s power over the policy clear.<\/p>\n<h2>Ownership, premium payer and beneficiary: how the roles fit together<\/h2>\n<p>The most common setup has the operating company own and pay for a policy on a key employee. The company is also the beneficiary, because it carries the financial hit if that person dies. A holding company can follow the same pattern for an owner-executive.<\/p>\n<p>Trust-owned setups look different. A trust may own a policy on an owner, with premiums paid from company or family funds. The beneficiary may be the trust or family members, depending on the trust&#8217;s terms.<\/p>\n<p>Match the payer and the payee on purpose. If the company pays premiums but a trust receives the money, the written agreement should explain why. An unexplained mismatch often leads to questions later.<\/p>\n<p>Changing ownership later can carry its own rules. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/2035\">IRC \u00a7 2035(a)<\/a>, if a decedent transferred an interest in any property, or relinquished a power over any property, during the 3-year period ending on the date of the decedent&#8217;s death, the value of that property (or interest therein) is included in the gross estate when it would have been included under section 2036, 2037, 2038, or 2042 had the transferred interest or relinquished power been retained on the date of death. Plan the structure before the policy is issued, not after.<\/p>\n<h2>Insurable interest, consent and underwriting<\/h2>\n<p>Under Florida law, a person buying insurance on another person&#8217;s life generally needs an insurable interest in that person when the contract is made, unless the benefits are payable to the insured or the insured&#8217;s personal representatives, or to any person having, at the time such contract was made, an insurable interest in the individual insured. An insurable interest is a legal stake in a person&#8217;s continued life. In a business setting, it usually comes from the working relationship.<\/p>\n<p>Florida law says a business entity has an insurable interest in its owners, directors, officers, partners, managers, and key employees or key persons. The entity must get written consent from that person before buying the insurance (<a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404<\/a>). The business may not retaliate against a key employee or key person who refuses consent. A trust, or the trustee of a trust, can also hold an insurable interest in the life of an individual insured under a life insurance policy owned by the trust, in limited cases: where the insured is the grantor of the trust, an individual closely related by blood or law to the grantor, or an individual in whom the grantor otherwise has an insurable interest, provided the life insurance proceeds are primarily for the benefit of trust beneficiaries having an insurable interest in the life of the insured.<\/p>\n<p>Underwriting applies to the insured no matter which entity owns the policy. Coverage is subject to health questions, and issue can depend on insurability.<\/p>\n<h2>Estate planning and the family trust<\/h2>\n<p>A reversionary interest, meaning a chance the policy or its proceeds return to the insured or may be subject to a power of disposition by the insured, counts only if its value exceeded 5 percent of the policy&#8217;s value just before death. That detail matters when a trust or company structure is being designed.<\/p>\n<p>A trust or holding company can also work alongside a buy-sell agreement. The terms must line up. Who buys, who receives the proceeds and what the trust says should all match the business documents.<\/p>\n<p>Estate and gift results turn on the specific trust terms. These points should go to the owner&#8217;s legal counsel alongside the insurance plan.<\/p>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Have questions about what happened?<\/h3><p class=\"wp-block-paragraph\">Ask our team directly. Tell us what you are dealing with and we will explain how the process works from here.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Talk to our team<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Talk to our team<\/a><\/div><\/div>\n<\/div>\n<h2>Tax and cash flow points a CPA reviews<\/h2>\n<p>As a general rule, premiums are not deductible when the taxpayer is a beneficiary. <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/264\">IRC \u00a7 264<\/a> says no deduction is allowed for premiums on a life insurance policy if the taxpayer is directly or indirectly a beneficiary. A company that receives the death benefit should review this rule before it pays premiums.<\/p>\n<p>The same section treats a policy as held by the business, not a natural person, when a trade or business is directly or indirectly the beneficiary, except a trade or business carried on as a sole proprietorship or one performing services as an employee.<\/p>\n<p>For the death benefit, <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">IRC \u00a7 101<\/a> generally excludes life insurance death benefits from gross income. Tax results turn on each structure&#8217;s details.<\/p>\n<p>Cash flow matters too. Decide who funds the premiums, how the payments are recorded in the company or trust, and whether the cost fits the budget for years. NR CPAs &amp; Business Advisors offers accounting and tax services as a separate practice from its insurance business.<\/p>\n<h2>Questions to answer before choosing the owner<\/h2>\n<p>Start with three questions. Who loses money if the key person dies? Who will pay the premiums? Who should receive the money?<\/p>\n<p>Then check the paperwork:<\/p>\n<ol>\n<li>Does the holding company or trust already exist, and do its terms fit this policy?<\/li>\n<li>Does the operating agreement or shareholder agreement allow the entity to own and pay for the coverage?<\/li>\n<li>Is there a buy-sell agreement, and does it match who pays and who receives proceeds?<\/li>\n<li>Has the insured person given written consent?<\/li>\n<\/ol>\n<p>Write the answers down before any application is signed. Changes after issue can be harder to make.<\/p>\n<h2>Talk through your ownership structure with our team<\/h2>\n<p>A coverage review is the first step for owners working through this question. If your operating company sits under a holding company or a family trust, and you&#8217;re deciding who should own a policy on a key owner or manager, our team can walk through it with you.<\/p>\n<p>Bring the core decision: who pays, who receives the death benefit and whose life is insured. <a href=\"https:\/\/nrcpas.com\/contact\">Contact NR CPAs &amp; Business Advisors<\/a> to start a coverage review.<\/p>\n<p>Nischay Rawal is a licensed insurance agent. Insurance is offered by the licensed agent, separately from the accounting practice of NR CPAs &amp; Business Advisors.<\/p>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/businessman-holding-a-coffee-cup-smiles-confidently-in-a-mod-photo.jpg\" alt=\"Businessman holding a coffee cup smiles confidently in a modern office while colleagues work nearby.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>Frequently asked questions<\/h2><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Can a family trust own a key person policy?<\/summary><p>Yes, in many structures a trust can own the policy. The trust terms and the business agreements must match the plan.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Can a holding company own a policy on an owner?<\/summary><p>It can, in many cases. Florida law generally requires that a person buying a policy on another person&#8217;s life have an insurable interest in that life, and generally requires the insured&#8217;s written consent on or before the contract is entered into.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Are key person premiums tax deductible?<\/summary><p>As a general rule, no, when the taxpayer is directly or indirectly a beneficiary (<a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/264\">IRC \u00a7 264<\/a>).<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Does the key person have to consent?<\/summary><p>Yes. Under Florida law, the insured must consent in writing on or before the contract is made, except for group life, prepaid funeral, and group accident, health, or disability policies, and a person with an insurable interest in a minor younger than 15 years of age may obtain a policy on the minor.<\/p><\/details><\/article>\n<footer class=\"disclaimer\"><em>NR CPAs &amp; Business Advisors, LLC, 782 NW 42nd Avenue, Suite 534, Miami, FL 33126. Life insurance is offered by Nischay Rawal, a Florida-licensed life and health insurance agent (license G066337). This page is general information about life insurance, not tax, legal or investment advice, and not an offer of any specific policy. Coverage, premiums and benefits depend on the issuing insurer&#x27;s underwriting and the policy&#x27;s terms. Policy loans and withdrawals reduce cash value and the death benefit and may have tax consequences.<\/em><\/footer>\n\n\n<div class=\"wp-block-group alignwide has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Want to know where you stand?<\/h3><p class=\"wp-block-paragraph\">Tell us about your situation and our team will walk you through the options available to you.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Request a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Request a coverage review<\/a><\/div><\/div>\n<\/div>\n<h2 class=\"wp-block-heading has-text-align-center\">What we review with you<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--shield\"><\/span><\/p><h3 class=\"wp-block-heading\">Ownership structure<\/h3><p class=\"wp-block-paragraph\">We look at how the holding company, the insured person and the business agreements fit together before any policy is discussed.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--document\"><\/span><\/p><h3 class=\"wp-block-heading\">Policy terms<\/h3><p class=\"wp-block-paragraph\">We explain the type of policy, the premium payment period, the limitations and exclusions, and how the policy can be renewed or cancelled.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--lightbulb\"><\/span><\/p><h3 class=\"wp-block-heading\">Tax and cash flow<\/h3><p class=\"wp-block-paragraph\">Our CPA view covers how premiums and proceeds may affect the company&#x27;s tax position and its cash flow.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--users\"><\/span><\/p><h3 class=\"wp-block-heading\">Families and business owners<\/h3><p class=\"wp-block-paragraph\">We work with Indian-American households and business owners across the United States, as well as Florida clients in Miami, Fort Lauderdale, West Palm Beach, Orlando, Tampa and Jacksonville.<\/p><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Before you decide<\/h3><p class=\"wp-block-paragraph\">Insurance is offered through Nischay Rawal, a licensed insurance agent, separately from our accounting practice. Policy values, benefits, limitations and exclusions are set out in the policy contract. Ask us to walk through those terms before you apply, and do not rely on any summary alone.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Ask us about your policy terms<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Ask us about your policy terms<\/a><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-surface-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center\">How a coverage review works<\/h2>\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">1. Tell us about the business<\/h3><p class=\"wp-block-paragraph\">Share the company&#x27;s ownership, the key person&#x27;s role and any buy-sell or shareholder agreements already in place.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">2. We review the structure<\/h3><p class=\"wp-block-paragraph\">We look at the holding company&#x27;s role, the coverage amount and how the premiums fit the company&#x27;s books.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">3. You decide with full information<\/h3><p class=\"wp-block-paragraph\">We explain the options in plain words, including what the policy does and does not cover, so you can decide with your own advisers.<\/p><\/div><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-base-color has-primary-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-4d466591 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--primary,#20242e);color:var(--wp--preset--color--base,#ffffff);padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center has-base-color has-text-color\">Protect your loved ones and the business they rely on. Talk with NR CPAs &amp; Business Advisors about a coverage review.<\/h2>\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-0aa01211 wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today<\/a><\/div><\/div>\n<\/div>\n\n<h2 class=\"wp-block-heading\">Related practice areas<\/h2><ul class=\"wp-block-list\"><li><a href=\"\/life-insurance-guides\/key-person-insurance\/florida\/\">Key Person Insurance in Florida<\/a><\/li><li>Key Person Insurance Amount Worksheet for Business Owners<\/li><\/ul>\n<!-- chg:section-siblings -->\n<nav aria-label=\"More in this section\">\n<h2>More in this section<\/h2>\n<ul><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-owner-lives-in-india\/\">Key Person Insurance When the Owner Lives in India<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-owner-living-abroad\/\">Key Person Insurance When the Owner Lives Abroad: Coverage, Ownership, and Documents<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-owner-out-of-work\/\">Can an Owner Who Is Out of Work for Months Still Have Key Person Coverage?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-owner-relocating-abroad\/\">Key Person Insurance for an Owner Who Moves Abroad: Coverage Planning for US Companies With Owners in India<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-owner-travels-abroad\/\">Key Person Insurance for Owners Who Live or Travel Abroad<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>Can a holding company or family trust own a key person policy? See how the owner, insured, premium payer and beneficiary roles fit together.<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":16,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"chg_review":"","chg_sendback":"","chg_canonical":"","chg_lang":"","chg_hreflang":"[{\"hreflang\": \"en\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-owned-by-trust-or-holding-company\/\"}, {\"hreflang\": \"es\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/es\/seguro-persona-clave\/seguro-persona-clave-fideicomiso-holding\/\"}, {\"hreflang\": \"x-default\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-owned-by-trust-or-holding-company\/\"}]","chg_jsonld":"[{\"about\": [{\"name\": \"Key person insurance\", \"@type\": \"Thing\"}, {\"name\": \"Holding company\", \"@type\": \"Thing\"}, {\"name\": \"Family trust\", \"@type\": \"Thing\"}, {\"name\": \"Insurable interest\", \"@type\": \"Thing\"}, {\"name\": \"Estate planning\", \"@type\": \"Thing\"}], \"author\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\", \"name\": \"NR CPAs & Business Advisors\", \"url\": \"https:\/\/nrcpas.com\/\"}, \"@context\": \"https:\/\/schema.org\", \"audience\": {\"@type\": \"Audience\", \"audienceType\": \"Business owners and family-business principals deciding which entity should own, fund and receive the benefit of a key person life policy\"}, \"headline\": \"Key Person Policy Owned by Holding Company\", \"keywords\": [\"key person policy owned by holding company\", \"key person insurance owned by trust\", \"who should own key person life insurance\", \"business owned life insurance holding company\", \"key person policy beneficiary business\", \"irrevocable life insurance trust key person policy\", \"transfer of life insurance policy ownership\", \"key person insurance premiums paid by company\", \"key person insurance estate planning\"], \"provider\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\", \"name\": \"NR CPAs & Business Advisors\", \"url\": \"https:\/\/nrcpas.com\/\"}, \"publisher\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\", \"name\": \"NR CPAs & Business Advisors\", \"url\": \"https:\/\/nrcpas.com\/\"}, \"speakable\": {\"@type\": \"SpeakableSpecification\", \"cssSelector\": [\"article > p:first-of-type\", \".wp-block-details p\", \"article > h1\"]}, \"inLanguage\": \"en-US\", \"description\": \"Explains whether a holding company or family trust can own a key person life insurance policy, how the owner, insured, premium payer and beneficiary roles fit together, and what to review before a policy is issued.\", \"spatialCoverage\": [{\"name\": \"Florida\", \"@type\": \"State\"}, {\"name\": \"United States\", \"@type\": \"Country\"}], \"isAccessibleForFree\": true, \"reviewedBy\": {\"@type\": \"Person\", \"name\": \"Erika Trinidad\", \"jobTitle\": \"Accountant\"}, \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"Can a family trust own a key person policy?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Yes, in many structures a trust can own the policy. 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