Business Owner Case Study:

Helping Sustain Professional and Personal Success

Kyle owns a successful, privately held business. He’s built an impressive net worth through business operations and investments within the company. Now, he’s nearing his life’s next chapter and wants to transition out of active management while leaving his life’s work in good hands — and keeping as much of the proceeds of any sale to preserve his wealth, estate and legacy.

His Opportunities

How We Could Help

His Opportunities:

His Opportunities: Solid Succession Planning

How We Could Help:

How We Could Help: Conduct business valuation to determine company’s market worth.

Explore transfer options including selling to internal and external stakeholders, establishing an Employee Stock Ownership Plan (ESOP) and using life insurance to fund any buy-sell agreement. Implementing leadership training for potential successors.

His Opportunities:

His Opportunities: Reducing Taxes

How We Could Help:

How We Could Help: Transfer partial ownership to heirs using lifetime gift exemptions and other strategies. Establish a grantor-retained annuity-trust (GRAT) or charitable remainder trust (CRT) to reduce taxable estate value.

Evaluate opportunities for Section 1022 exclusion on the sale of qualified small business stock (QSBS).

His Opportunities:

His Opportunities: Securing His Legacy and Estate

How We Could Help:

How We Could Help: Work alongside professionals to help draft and update wills and living trusts to properly distribute assets.

Establish a family foundation to support philanthropic goals.

Incorporate life insurance to equalize inheritances and provide liquidity for estate taxes.

Align expectations about legacy and business involvement by holding discussions with heirs.

Potential Action Plan

Short-Term

Assemble a comprehensive team: investment planner, attorney, tax strategist, and business consultant.

Initiate a business valuation and review of existing legal documents.

Identify potential successors and communicate the succession goals.

Medium-Term

Implement chosen transfer method (e.g., ESOP, sale, or family transfer).

Set up trusts and finalize gifting strategies.

Conduct periodic estate plan reviews to align with changes in tax law or family dynamics.

Long-Term

Review the business under new leadership and provide mentorship if needed.

Engage in charitable initiatives to build a legacy aligned with personal and family values.

Maintain a tax-efficient structure to preserve generational wealth.

Possible Outcomes:

Promote seamless transition to new leadership with minimal disruption

Reduce multi-generational tax burdens through integrated strategies and proactive planning

Develop a legacy plan that supports family, employees and community causes

Position wealth to grow and maintain for future generations

What Do You Want to Achieve?

Talk With Our Wealth Advisors

This case study is hypothetical and for discussion purposes only. Client names and images mentioned in above case study are also hypothetical in nature and do not represent any actual client. It is not intended to represent any specific return, yield or investment. Individual experiences referenced above may not reflect the future experience of any one client. The planning process discussed may not be suitable for your personal situation, even if it is similar to the example presented. Past performance is no guarantee of future results. Investing involves risk including the possible loss of principal.

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