{"id":8795,"date":"2026-11-02T05:13:49","date_gmt":"2026-11-02T05:13:49","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-trust-family-limited-partnership\/"},"modified":"2026-11-10T16:37:41","modified_gmt":"2026-11-10T16:37:41","slug":"key-person-insurance-trust-family-limited-partnership","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-trust-family-limited-partnership\/","title":{"rendered":"Miami Key Person Insurance Held in Trust Guide"},"content":{"rendered":"\n
<\/span>\"A
\n

Miami | Key Person Insurance<\/p>

Protect Your Business When a Key Person Is Lost<\/h1>

A plain-language guide to key person insurance held in trust, with a CPA's view of tax and cash flow. Insurance is offered through Nischay Rawal, a licensed insurance agent, separately from our accounting practice.<\/p>

Call us today to schedule a coverage review<\/a><\/div>
Call us today to schedule a coverage review<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n

By Nischay Rawal \u00b7 Published November 2, 2026<\/p>\n\n

\n\n\n

Key person insurance<\/a> held in trust means a trust, not the business, owns a life insurance policy on someone the business depends on. The trust or a family limited partnership (FLP) pays the premiums and receives the death benefit under its own documents. This page explains who holds each role, the tax points a CPA reviews, and the steps from a first meeting to policy issue. NR CPAs & Business Advisors is a Miami CPA firm. Insurance is offered by Nischay Rawal, a licensed insurance agent, separately from the firm’s accounting practice.<\/p>\n

What Key Person Insurance Held in a Trust or FLP Is<\/h2>\n

It’s life insurance on an essential person, owned by a trust or partnership instead of the company. A trust can own it only if 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, and the life insurance proceeds are primarily for the benefit of trust beneficiaries having an insurable interest in the life of the insured. A key person is someone whose death or disability could materially affect the business. That might be an owner, an officer, or a key employee whose skills, customer relationships or leadership the business relies on. The Insurance Information Institute<\/a> explains that this cover compensates a business for financial losses caused by that person’s death or disability.<\/p>\n

When a trust or FLP owns the policy, neither the company nor the individual is the owner. The owner pays the premiums, holds the policy and collects the death benefit under the trust or partnership terms. The policy is usually whole life or term life insurance issued by a named insurer. The owner, insured and beneficiary are set in the application.<\/p>\n

Some owners tie coverage to an estate or ownership plan instead of leaving it with the company. That keeps the policy aligned with who will hold the business interest later.<\/p>\n\n

\n

If a partner's health or a family member's role in the business is changing, we can help you review who should own this coverage. Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.<\/p>

Schedule a coverage review<\/a><\/div>
Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n\n
\"Two<\/figure>\n

Who This Structure Is For<\/h2>\n

This structure suits owners whose documents already decide who controls and benefits from the business. It often fits:<\/p>\n