Planning for a rainy day, then it pours
For 15 years, John and Laura owned a successful business manufacturing acoustic recording equipment. As they looked towards the next chapter in their life, they contemplated selling the company. They wondered how to best maximize the sale proceeds for the benefit of their family.
With a current estate worth over $20 million, they faced an estate tax of $3.6 million at death. One of their goals was to give large sums of money to their three children and eight grandchildren while preserving their lifetime gift tax credit to shield their assets from estate tax. The couple wanted to keep their estate plan as simple as possible, but they were willing to use complex strategies to achieve results.
By consulting their Aspiriant wealth manager and estate planning attorney well in advance of their liquidity event, John and Laura were able to take advantage of the unique opportunities the business sale presented and more effectively reach their wealth transfer goals of:
- Minimizing gift and estate taxes
- Transferring wealth to children and grandchildren
- Keeping their estate plan as simple as possible
Important Disclaimer: This case study is presented as a hypothetical scenario and is intended for illustrative purposes only. It does not represent a specific client’s experience, but rather is meant to provide an example of Aspiriant’s process and methodology. An individual’s experience may vary based on his or her individual circumstances. There can be no assurance that similar results would be achieved in comparable situations. No portion of this case study is to be interpreted as a testimonial or endorsement of Aspiriant, and there is no way to ascertain whether a specific client would have been satisfied with their results.