Clients, husband age 77 and wife age 66 co-founded a business enterprise valued at approximately $15MM and had additional assets of $11MM, including real estate and an art collection. The client had a revocable living trust in place but no additional planning with a current estate tax exposure of approximately $9MM. Client wished to pass the family business equally to their two daughters, one of whom was active in the management of the company. The client was also concerned about protecting these assets from potential lawsuits or other threats.

We recommended that the business interests be transferred to a Nevada Asset Protection Trust for their benefit and subsequently sold to Grantor Deemed Owned Trusts for the benefit of their daughters in exchange for a promissory note. We also recommended restating their existing revocable trust to include provisions for the art collection and the creation of testamentary charitable lead trusts. Additionally, life insurance was purchased by the Grantor Deemed Owned Trusts to provide liquidity for the estate. The client’s current estate tax exposure is $0.