THE COMMERCIAL LANDLORDS

Clients (ages 65 and 62 respectively) own commercial real estate in San Francisco and Oakland valued at $17MM with additional personal assets of $5MM consisting of personal residences and investments. Clients have 1 adult child and no grandchildren.

Clients had put in place a fully funded revocable living trust, leaving an estate tax exposure of $11MM.

We recommended a restated, fully funded revocable living trust, 2 family limited partnerships to hold their commercial real estate; zeroed-out Grantor Retained Annuity Trusts (GRATs); a family foundation; a second-to-die term life insurance policy held in an Irrevocable Life Insurance Trust (ILIT) for the term of the GRATs; refinancing of debt on the commercial properties which freed up $15K per month of cash flow; and a testamentary charitable lead annuity trust. Their estate tax exposure was reduced to $0.