Family Office Support
David
When we first met with David, we asked him various questions to make sure we have a good understanding of his father’s estate structure. We explored:
• Are all the documents in the estate such as power of attorney, beneficiaries’ designations, titles of the trusts are up to date?
• Are there any assets outside of the estate that may potentially trigger probate?
• Are there any tensions in the family that may cause a dispute over the estate?
• What are the trusts involved in the estate? What are the nature and the history of transfers of assets into the trusts?
• Are there beneficiaries who are willing and able to manage Dad’s business?
Once we had an understanding of the estate and planning done during Dad’s life, we were able to help client with the settlement of the estate and properly file the estate tax returns. We decided to do the following:
• Reviewed past gift tax returns to establish how much of the estate can be reduced through the gifts.
• Reviewed trust assets to establish how much can estate be reduced by the value of the assets transferred to trusts.
• Insured proper succession of the business by David through a buy-sell agreement from other beneficiaries unable or unwilling to operate the business.
• Suggested to create generation skipping trusts (GSTs) for Mom to avoid double taxation of her part of the estate in the future.
• Made sure that we collected all the information from financial institutions, advisors, appraisers and attorneys to properly report assets on estate tax return and obtain applicable deductions which reduced the estate and the estate tax.
Since then, David’s family became one of our largest clients. David grew his father’s business and is currently one of the larger real estate investors in the area. We consult David and the rest of the family on tax implications for their various business and investing activities. The firm is handling business, individual and trust returns preparation, as well as general business and tax consulting, estate planning and whatever else we can help with in managing family’s affairs. David is now looking at his succession to manage his complex business and investment structure. Going forward, he will rely on our firm in helping the family with estate planning and in providing guidance to his heirs on handling the business and investments should he decide to retire or in the event of his death. We are looking forward to working with the third generation of the family to help preserve their wealth and legacy.