THE CEO

Clients (ages 44 and 45) with two children ages 5 and 10 with a current estate of $15MM. He is CEO and founder of a financial services company which expects to go public in the near future. Client was interested in transferring a substantial amount of his founder’s stock to trusts for the benefit of his children, as well as guardianship planning for their young children in the event of the clients’ premature death. They had an estate tax exposure of over $7.8MM.

We recommended that they implement a fully funded revocable living trust which contained detailed instructions for potential guardians about their wishes with respect to their children’s education, religious training, and providing incentives to their children to achieve their own success. We also proposed several family limited partnerships; Grantor Retained Annuity Trusts; irrevocable trusts for their children which hold company stock and a testamentary charitable lead annuity trust. A total of 2,000,000 shares of company stock were transferred to the children’s trusts at a minimal gift tax cost. Their current estate tax exposure is $0.