Jim and Jan are 60 and 52 respectively. Several years ago they started up a national sales and education business. After a few years getting the business off the ground and building their intellectual property, the capture of new markets and increased margins are generating rapidly increasing revenues and profits. As a result, they have recently been approached by a 3rd party buyer and it has motivated them to begin thinking about their business succession plan. Their eldest son has become very involved in the business, playing an ever increasing role in day to day operations, and would like to take the business over at some point.
Their current net worth is approx. $22M with $20M tied up in the business. Until now, all of the profits were reinvested into the business to help generate their rapid growth. Jim and Jan feel they can finally afford to distribute some of the excess profits and begin to plan for their future retirement.
The primary planning goals are to:
- Build personal wealth outside of the business.
- Create a business succession/transition plan.
- Equalize the inheritances for their children.
- Provide pathways into the business should their other 3 sons decide to participate.
- Support their church and other community causes through charitable planning.
- Protect the business and family wealth from estate taxes
This presentation will provide an overview of the basics of corporate giving and sponsorships, as well as insider tips on building a strong corporate giving/sponsorship program. The presenters will also discuss how corporate donors’ expectations have changed in a post-recession world, and what these changes/trends mean for corporate fundraising strategies.
Learning Objectives:
• How to research foundations/corporations to find the perfect match
• The initial meeting—who do you bring, what do you say, how do you follow-up
• Maintaining relationships—it’s more than the next ask
Volunteer fundraising – how you can get involved. Sara Wilcox, Volunteer Fundraising Manager, and Anna Roberts,
Volunteer Fundraising Manager, talk about fundraising at the Muscular Dystrophy Campaign National Conference 2011.
This presentation will provide an overview of the basics of corporate giving and sponsorships, as well as insider tips on building a strong corporate giving/sponsorship program. The presenters will also discuss how corporate donors’ expectations have changed in a post-recession world, and what these changes/trends mean for corporate fundraising strategies.
Learning Objectives:
• How to research foundations/corporations to find the perfect match
• The initial meeting—who do you bring, what do you say, how do you follow-up
• Maintaining relationships—it’s more than the next ask
Volunteer fundraising – how you can get involved. Sara Wilcox, Volunteer Fundraising Manager, and Anna Roberts,
Volunteer Fundraising Manager, talk about fundraising at the Muscular Dystrophy Campaign National Conference 2011.
Ann Casey from Madison Community Foundation and Theresa Zeidler-Shonat from Smith & Gesteland discuss approaches to Planned Giving. Leaving a legacy takes some organization to pull it off successfully.
Many people are interested in leaving a philanthropic legacy, extending their generosity beyond their lifetime.
Legacy philanthropy, known commonly as planned giving," can consist of anything from bequests to life insurance, IRAs to 401(k)/403(b), as well as charitable gift annuities.
Two area experts, Theresa Zeidler-Shonat, Director of Valuation Services at Smith & Gesteland, and Ann Casey, Vice President of Finance and Operations at the Madison Community Foundation, discussed the different ways planned gifts can be structured, sound tools to make the gifting process work smoothly, and the information you need to initiate the planned giving process.
Bryan Clontz visited the Community Foundation of Sarasota County on Tuesday, October 27 to share how nonprofits can develop a robust planned giving program with no money and only 2-3 hours per month.
Workshop around NextGen and Family philanthropy and the changing charitable landscape in Canada for the Alberta Family Business Institute at University of Alberta.
Includes activities and discussion points from the Johnson Center and 21/64.
Easy-to-implement donor upgrade strategies and the results of a new study about the impact of popular fundraising practices. Information on the how to balance short-term hits (matching campaigns and second-gift asks) with long-term strategies (sustainer programs and conditional ask strings). This also features the impact that emphasis and frequency have on results and the relative importance of the board v. the development director.
InKnowVision July 2014 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Review the recording as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate Planning InKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
Learn more at www.inknowvision.com
Watson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Ben and Sara are 55 and 54 respectively. They own and operate a very profitable well drilling and maintenance business. These growing annual profits have allowed them to continue purchasing significant oil and gas rights and land that has increased their net worth by $30M in 5 years. Ben and Sara spend about $250K a year and want approximately another $750K a year for discretionary and other expenses. Their business currently generates $925K of taxable income and they have depreciation and depletion add back of over $1.5M which provides significant income tax deductions and free cash flow.
Learn more at www.inknowvision.com
Thomason Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Ann Casey from Madison Community Foundation and Theresa Zeidler-Shonat from Smith & Gesteland discuss approaches to Planned Giving. Leaving a legacy takes some organization to pull it off successfully.
Many people are interested in leaving a philanthropic legacy, extending their generosity beyond their lifetime.
Legacy philanthropy, known commonly as planned giving," can consist of anything from bequests to life insurance, IRAs to 401(k)/403(b), as well as charitable gift annuities.
Two area experts, Theresa Zeidler-Shonat, Director of Valuation Services at Smith & Gesteland, and Ann Casey, Vice President of Finance and Operations at the Madison Community Foundation, discussed the different ways planned gifts can be structured, sound tools to make the gifting process work smoothly, and the information you need to initiate the planned giving process.
Bryan Clontz visited the Community Foundation of Sarasota County on Tuesday, October 27 to share how nonprofits can develop a robust planned giving program with no money and only 2-3 hours per month.
Workshop around NextGen and Family philanthropy and the changing charitable landscape in Canada for the Alberta Family Business Institute at University of Alberta.
Includes activities and discussion points from the Johnson Center and 21/64.
Easy-to-implement donor upgrade strategies and the results of a new study about the impact of popular fundraising practices. Information on the how to balance short-term hits (matching campaigns and second-gift asks) with long-term strategies (sustainer programs and conditional ask strings). This also features the impact that emphasis and frequency have on results and the relative importance of the board v. the development director.
InKnowVision July 2014 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Review the recording as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate Planning InKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
Learn more at www.inknowvision.com
Watson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Ben and Sara are 55 and 54 respectively. They own and operate a very profitable well drilling and maintenance business. These growing annual profits have allowed them to continue purchasing significant oil and gas rights and land that has increased their net worth by $30M in 5 years. Ben and Sara spend about $250K a year and want approximately another $750K a year for discretionary and other expenses. Their business currently generates $925K of taxable income and they have depreciation and depletion add back of over $1.5M which provides significant income tax deductions and free cash flow.
Learn more at www.inknowvision.com
Thomason Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Griffin Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Morgan Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
This redacted advanced estate planning and tax planning design plan covers the facts and circumstances, the Family Wealth Goal Achiever Process, and the solutions used in the case.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
In this case we used a Charitable Life Estate as a planning too.
This infrequently used technique can be very powerful when working with high net worth clients.
We will look at a couple examples where InKnowVision has used this structure to create significant income and estate tax savings and paired this technique with wealth replacement trusts in order to deliver full value to the family.
In this presentation we will explore how to present the concept to clients and also take a look into the variables that go into the ultimate calculation.
Learn more at www.inknowvision.com
InKnowVision August 2013 HNW Technical PPT - Family BanksInKnowVision
One of the common themes that we continue to see among our clients is the idea that leaving too much money to children will spoil them. InKnowVision often employs the family bank concept to help people understand how they can re-gain control in this complex area.
Join us as we look at this interesting concept and understand how to present it to clients, how to determine the client profile for this strategy and how to implement this type of planning.
InKnowVision March 2014 Buy-Sell Problem Solver Case StudyInKnowVision
Last month we unveiled our Buy-Sell Problem Solver™ client engagement tool which includes:
- Legal Audit
- Tax Minimizer
- Value Identifier
- Funding Review
This new tool is specifically designed to help advisors quickly engage new business clients and uncover advanced planning opportunities.
View the recording for a case study showing how InKnowVision’s Buy-Sell Problem Solver™ led to a comprehensive planning engagement with a family business worth over $100M.
The owners of this successful family business thought they were doing everything right:
- They had a buy-sell agreement in place
- Their agreement was fully funded with insurance
- They continually updated their insurance to keep pace with the growing company value
Unfortunately, the agreement they had in place was going to cost the family millions of dollars in unnecessary taxes when it was triggered. Join us to learn how we helped this family solve a significant problem they didn’t know they had.
Who should attend:
- Investment Advisors
- CPAs
- Attorneys
- Insurance Professionals
Insights in Philanthropy Australia
Tax Efficient Giving and Bequeath Strategies
Digital Disruption – the impacts on NFPs
Common misunderstandings surrounding NFP
Reporting
Topical Legal Considerations for NFPs
Establishing Social Enterprise
State Tax Exemption for Charitable Institutions
The Family Business Life Cycle: Creating & Distributing WealthNicola Wealth
Wealth can be created at each stage of the life cycle of the family business. The foundation established early on will create a harvest at a later time. Many families experience turbulence when transitioning their businesses (and wealth) to the next generation. It needn’t be so. Being proactive in your approach to this critical subject can successfully prepare the recipients of your wealth and ensure the continuity of your business, and your legacy. We know what issues typically arise at each step along the journey—the key for clients is to anticipate and prepare for them throughout the various stages.
How can you manage your money through different life situations?
This presentation provides a variety of scenarios in which money plays an important feature in moving forward in your life. We have four scenarios of individuals in various stages of employment. We will discuss the aspects of money management that may be important in that scenario and the resources available to that individual.
Business Continuity and Succession Planning for the Sole TraderReginald Alleyne
95% of sole traders, when asked what they would want for their business if the unexpected occurs, said they would like it to continue. More than 90% who expressed this desire, eventually had to either sell or liquidate their business. How can you prevent this eventuality and ensure the continuity of the business you worked so hard to build?
Planning for the Future While Protecting Your Assetsaquayle
Addresses structuring a medical practice in the most advantageous way for asset protection, audit risk and income risk. Also touches on financial and estate planning strategies that secure wealth for the future while protecting assets. There is also a review of potential tax planning opportunities for protecting and sturcturing wealth and estate
Similar to InKnowVision June 2014 HNW Case Study - Martin FWGA (20)
InKnowVision February 2014 Case Study - Anderson FWGAInKnowVision
Jeff is 75 and Theresa is 72. Jeff recently retired from an executive position in a public company. As a result of his retirement he exercised over $45M in stock options and has 5 more years of deferred compensation payments. Jeff has also sold his 50% interest in his Corporation and the note payments are providing significant income for the next 9 years.
Jeff and Theresa have annual living expense desires of $725,000, with the available income to more than meet this need. Jeff’s deferred compensation payments average more than $2M/yr. for the next 5 years; his annual pension payments are $660k/yr. (inflating); and he also has note payments totaling $360k/yr. for the next 9 years from the buyout of his Corporation interests. These sources of income are in addition to an investment portfolio in excess of $60M that comprises a large portion of their $90M net worth.
The primary planning goals are to:
- Provide an inheritance to their children in a manner which will enable them to create opportunities for themselves but not encourage them to be unproductive.
- Provide for a charitable gift at death to their family foundation as long as it doesn’t greatly diminish the amount they pass to their heirs.
- Eliminate or reduce estate taxes.
InKnowVision December 2013 Case Study - Watson FWGAInKnowVision
Ben and Sara Watson are 55 and 54 respectively. They own and operate a very profitable well drilling and maintenance business that has allowed them to acquire and accumulate oil and gas rights totaling $30M over the last 5 years. These oil and gas rights are generating in excess of $1.5M a year on top of the $925k of income from their separate drilling and maintenance business. Ben and Sara have 3 daughters. Their youngest daughter, Katie, and her husband have played key roles in growing Watson Drilling. Ben would like to begin transitioning the business to them and ultimately leave them with the benefit of the business. With the business going to just one of the daughters, Ben and Sara want to equalize the inheritance to their other two daughters. For this, they have already purchased four whole life insurance policies. Two of these policies have significant loans against them and very little cash surrender value. With premiums totaling $400k for the four policies, all owned inside their estate, and insufficient death benefit to cover potential estate taxes and equalize the daughters’ inheritances, these policies may not meet the family’s needs.
The primary planning goals are to:
-Maintain their customary base lifestyle need of $250,000, with approximately another $750,000 for discretionary and other expenses.
-Provide for the financial security of the surviving spouse.
Provide a succession plan that will allow for a smooth transition of Watson Drilling to their daughter, Katie.
-Assure they have sufficient liquid assets available at their deaths to eliminate the forced liquidation of business or real estate assets.
-Maximize the inheritance that they leave for their children and grandchildren.
InKnowVision November 2013 HNW Technical PPT - Liquidity PlanningInKnowVision
In this presentation we looked at the problem seen in many large estates - the lack of liquidity to deal with estate equalization, estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
View this recording to see various designs for creating liquidity.
InKnowVision October 2013 Case Study - Lewis FWGAInKnowVision
Duncan and Tina are both 65. They live a comfortable lifestyle, spending about $1,600,000 a year after taxes and gifting about $2,000,000 a year to their family foundation. With assets worth approximately $62M and annual income of over $7M, they currently pay just over $2M a year in income taxes and have an increasing estate tax and ongoing income tax exposure.
The primary planning goals are to:
-Make sure that they have sufficient funds to live on for the rest of their lives (approx. $1,600,000/yr. after taxes and gifts).
-Assure that Duncan's, Inc. does not have to be liquidated as a result of their death.
-Provide a successful transition of the business to their son, Jason, while ensuring an equal inheritance for their son, Jeremy. They would like to leave 50% of their estate to Jason & Jeremy and another 25% to their grandchildren and other family members.
-They wish to continue annual giving to their family foundation and ultimately leave 25% of their estate to the foundation at death.
-Make sure the company buy/sell agreement accurately reflects the wishes of the family owners in the most tax efficient manner possible.
-Eliminate or reduce estate taxes.
InKnowVision September 2013 Captive Insurance PowerpointInKnowVision
After completing this course, you will be able to:
- Identify the benefits of Captive Insurance companies
- Differentiate which clients would be ideal for a Captive
- List the necessary steps to form a Captive
- Define and address Captive tax issues
- Apply all of the processes to form a successful Captive Insurance company
InKnowVision July 2013 HNW Marketing PPTInKnowVision
Using HNW Content on LinkedIn to Market Your Firm
In this high net worth marketing webinar, we will focus on using HNW content on LinkedIn.
You will learn:
- How using HNW content on LinkedIn attracts your ideal client, referral sources and more
- Why regular updates to your LinkedIn profile using HNW content matters
- Which types of content posted on LinkedIn actually make a difference
Join us for the fourth part of our HNW Content Marketing Series. We will also be featuring a short Q&A with a current Educate2Motivate customer who will describe how content marketing has helped him reach his target market.
InKnowVision July 2013 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Join us as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
InKnowVision June 2013 HNW Marketing PPTInKnowVision
5 HNW Content Strategies You Won't Want To Miss
Recently we’ve shared with you why you need to use high net worth content and how to find it. Now it’s time to learn how to deploy high net worth content and start measuring your results.
In this high net worth marketing webinar, we will show you:
-What top 5 strategies are most important in reaching the high net worth
-How these top 5 strategies are used to deploy high net worth content
-Why they have the most impact on your high net worth audience
-Who will benefit most using these 5 top strategies
InKnowVision June 2013 HNW Technical PPT - Buy Sell PlanningInKnowVision
"Buy Sell Planning"
Redemption, cross purchase, hybrid or entity. Which is the best way to approach a buy sell for your clients? How best to fund the buy sells? And should you be using these agreements at all? Each of these will be on the table for discussion during this engaging session.
InKnowVision May 2013 HNW Marketing PPT - Content Marketing Part IIInKnowVision
In this session, we’ll discuss how HNW content marketing is measured and what return on investment you can expect when implementing even the simplest content marketing strategies.
Content marketing is a multiplier strategy, meaning that you can leverage one piece of content up to 10 different ways. Talk about a return on your investment!
The key however is to deliver exceptional content on a consistent basis. When it comes to the high net worth, content marketing will make the largest impact in creating “online” trust and lead nurturing hands down.
This will be 25 minutes of jam packed content marketing information you won’t want to miss.
InKnowVision March 2013 HNW Technical PPT - Liquidity Needs in Estate PlanningInKnowVision
In this presentation we’ll be looking at the problem seen in many large estates - The lack of liquidity to deal with estate equalization and liquidity for areas such as estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
In this session we will look at various designs for creating liquidity.
InKnowVision February 2013 HNW Marketing PPTInKnowVision
In this 25 minute HNW marketing webinar you will learn:
What current trends are driving HNW planning
How successful HNW Marketing retooling can bring new opportunities
Why Content Marketing is the #1 strategy in the search for top HNW advisors
When your existing book of business is your best HNW lead source
InKnowVision strives to bring you the most current marketing strategies to stay on top of your HNW prospect and client opportunities. We hope you will join us for this informative live HNW marketing webinar.
InKnowVision February 2013 HNW Technical PPT - Captive InsuranceInKnowVision
Scott Hamilton, CEO of InKnowVision, will discuss the use of captive insurance companies for estate planning, business tax planning, risk management and income tax benefits. All of these benefits can be substantial for the right company. As a CPA, attorney or financial advisor you will want to learn about captive insurance planning to help your clients reduce their tax liability, transfer more wealth out of their estate, manage risk, and much more.
This program is ideal for those who wish to reach the HNW market and those who have business clients with gross revenues of $10M and higher.
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
The primary planning goals are to:
Provide for the financial security of the surviving spouse.
Maintain Carter Manufacturing as a viable company in their hometown after they exit the business.Maintain their customary lifestyle and gifting. This should take approx. $650,000 annually after taxes.
Eliminate or reduce estate taxes.
Maintain adequate gifting to their children and grandchildren. Their main priority is providing funds for their grandchildren’s educations.
Maximize the inheritance they leave to their children and grandchildren.
Establish a family foundation for lifetime and future family charitable giving.
Learn more at www.inknowvision.com
InKnowVision January 2013 HNW Marketing PPTInKnowVision
In this 30 minute webinar, you will learn:
Why $30M-$49M in net worth is the fastest growing segment
How you can attract these HNW clients
What three new marketing messages you must use in 2013
Why you need to prepare your marketing plan now
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth.
As part of Chris’ retirement package, he has an annual pension payment of approximately $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000.
As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The primary planning goals were to:
Make sure that they have sufficient funds to live on for the rest of their lives (approximately $230,000 after taxes and gifts).
Provide for the financial security of the surviving spouse.
Create an inheritance for their children which protects them from any potential future creditors and/or predators.
Provide a charitable gift at death as long as it doesn’t greatly diminish the amount they pass to their heirs.
Eliminate or reduce estate taxes.
Myer Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
The primary planning goals are to:
Make sure that he has sufficient funds to live on for the rest of his life (approx. $600,000/yr., including alimony, after taxes and gifts).
Reduce income taxes.
Maximize the inheritance that he leaves to his children and grandchildren. Consider passing his business interests to his children involved in the industry while providing an equal inheritance of non-business interests to those that are uninterested.
Assure that he has sufficient liquid assets available at his death to eliminate the forced liquidation of his business assets.
Eliminate or reduce estate taxes.
InKnowVision November 2012 HNW Marketing PPTInKnowVision
2013 is Poised to be a Banner Year for HNW Planners:
Will you be one of them?
In this 25 minute HNW marketing webinar you will learn:
Why $30M-$49M in net worth is the fastest growing segment
How you can attract these HNW clients
What three new marketing messages you must use in 2013
Why you need to prepare your marketing plan now
InKnowVision November 2012 Case Study - Basic Family Wealth Goal AchieverInKnowVision
Tom is 83 and Jane is 76. They have two children who are both well employed and live productive and happy lives. Tom was an attorney who headed a large patent firm in Washington DC. Jane served as an expert in international trade for much of her professional life. During the latter part of his career, Tom agreed to do work for a start up company that became very successful. Today, Tom’s share of the company is valued at $3.2M but generates $1.4M-$1.5M per year in taxable distributions. Several years ago, the company spun out one of its divisions and took the new company public. It has seen massive growth; almost no dividends have been distributed, and the company has a value to Tom today of approximately $6.4M. Tom and Jane also have approximately $5.2M in cash, $3.2M in retirement funds, and real estate of $4M for a total net worth of about $22M.
The primary planning goals are to:
Make sure that they have sufficient funds to live on for the rest of their lives
Maximize what they leave to their children and grandchildren
Increase the amount of charitable giving that they are currently doing
Equalize the financial positions of their son and daughter
Make a substantial provision for charity in place of estate tax if possible
InKnowVision November 2012 Special HNW Marketing Webinar - Tom KaszaInKnowVision
Our guest speaker Tom Kasza of Hillard Heintze will educate us on why HNW clients need a security strategy today. By designing and implementing security strategies your HNW client can be prepared for managing unforeseen personal security risks.
You will learn:
How to introduce this service to your HNW clients
How it will elevate you in your HNW market place
How to identify potential risks to your HNW clients
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3. Maintain Lifestyle
• Assuming $250,000+ before taxes and gifts
3
Maintain
Lifestyle
Build
Personal
Non-
business
Wealth
Busines
s
Successi
on/
Transitio
n
Encoura
ge
Children
Charitabl
e
Causes
Protect
Busines
s From
Estate
Tax
4. Build Personal Wealth
• Accumulate liquid wealth outside business
• Reduce future personal financial reliance on the
business
4
Maintain
Lifestyle
Build
Personal
Non-
business
Wealth
Busines
s
Successi
on/
Transitio
n
Encoura
ge
Children
Charitabl
e
Causes
Protect
Busines
s From
Estate
Tax
5. Business Succession/Transition
• Management / Control Roles
• Day to day
• Strategic
• Keep or sell
• Compensation
• Incentive Programs
5
Maintain
Lifestyle
Build
Personal
Non-
business
Wealth
Busines
s
Successi
on/
Transitio
n
Encoura
ge
Children
Charitabl
e
Causes
Protect
Busines
s From
Estate
Tax
7. Support
Church and Community
Develop
• Vision
• Goals
• Milestones
• Funding
Eliminate Risks
• Estate tax
• Lack of plan
Maintain
Lifestyle
Build
Personal
Non-
business
Wealth
Busines
s
Successi
on/
Transitio
n
Encoura
ge
Children
Charitabl
e
Causes
Protect
Busines
s From
Estate
Tax
7
15. Goals Addressed
• Maintain lifestyle and build liquidity
• Keep control - no major moves
• Protect business from estate tax
• Encourage children and future generations
• Plan for supporting church and causes
15
16. Plan Components
• Re-cap ownership – IP Company
• Convert IP Company to LLC
• Create incentive and discretionary trust for children/heirs
• Gift IP Company to trust
• Create testamentary CLAT or outright charitable gift
• Life insurance for wealth replacement or taxes
16
20. Incentive Trust
Advantages
• Provides structure for
encouraging heirs to be
productive members of society
• Assets are estate tax free
Disadvantage
• Incentives may not work
20
Incentive Trust
Children
Grandchildren
and Beyond
• To acquire or improve a primary residence based on child’s contribution of sweat or cash equity
• To establish or maintain a business or professional practice
• To match personally earned income
• To match a child’s financial contributions to charity
• To reward a child for career choices that are often not financially rewarding such as artist, teacher,
mission worker or nurse
• To recognize and reward a child’s contribution to raising a family
22. Gift IP Company Shares to Trust
Advantages
• Maintain control of IP Company
• Leverage use of exemption
• Move cash flow out of estate without gift or estate tax
• Provide liquidity
• Reduce estate tax
22
Jim Incentive TrustGift
IP Company
Non-Voting
Shares
23. License Intellectual Capital
Advantages
• IP Company decisions made by controlling shareholders
• Moves cash flow out of estate with no gift tax consequence
• Provide cash flow flexibility – $275k illustrated in plan (amount is flexible)
• Cash to create liquidity
• Flexibility in event of sale of company. Price could be allocated to Business or IP
Company as desired
23
Business IP Company
Annual
Royalties
License
Agreement
24. Charitable Gift at Second Death
Advantages
• Reduce / Eliminate estate tax
• Fund charity
Disadvantage
• Not all assets go to heirs
24
Charitable
Foundation
Jim & Jan’s Taxable
Estate
Reduce / Eliminate
Estate Tax
32. Complex Plan‐Sale to GDOT
Goals Addressed
• Maintain lifestyle and build liquidity
• Keep control – not ownership of Business
• Protect Business from estate tax
• Encourage children and future generations
• Plan for supporting church and causes
32
33. Components – Part 1
• Re-cap ownership – Business
• Retain ownership of voting shares
• Transfer non-voting shares to new trust
• Part Gift
• Part Sale
• Note from trust finances the sale
33
34. Components ‐ Part 2
• Use incentive trust for heirs
• Charitable trust or charitable gift at second
death
• Use life insurance for wealth replacement or to
pay estate tax
34
38. Incentive Trust
Advantages
• Provides structure for
encouraging heirs to become
productive members of society
• Assets are estate tax free
Disadvantages
• Incentives may not work
38
Incentive TrustIncentive Trust
Children
Grandchildren
and Beyond
• To acquire or improve a primary residence based on child’s contribution of sweat or cash equity
• To establish or maintain a business or professional practice
• To match personally earned income
• To match a child’s financial contributions to charity
• To reward a child for career choices that are often not financially rewarding such as artist, teacher,
mission worker or nurse
• To recognize and reward a child’s contribution to raising a family
40. Gift and Sell Non‐Voting Shares
Advantages
• Maintain control
• Eliminate Business appreciation in
your estate
• Pass more assets to heirs
• Protect business from estate tax
Disadvantages
• No ownership
• More complexity
• Jim & Jan still owe
income tax
40
Jim & Jan
New Incentive Trusts
GDOT
Gift $5M
Non-Voting
Shares
Sell Balance
of
Non-Voting
Shares
Promissory Note
41. Cash Flow – Post Gift and Sale
Advantages
• Cash flow to Jim and Jan for
taxes
• Allows cash to build-up in
trust for future inheritance
41
Business
Incentive Trust
GDOT
Jim & Jan
Interest/Principal
Tax Reimbursement
Discretionary Distributions
Dividends
44. Charitable Gift at Second Death
Advantages
• Reduce / Eliminate estate tax
• Fund charity
Disadvantage
• Not all assets go to heirs
44
Charitable
Foundation
Jim & Jan’s Taxable
Estate
Reduce / Eliminate
Estate Tax
51. Action Items
• Simple vs Complex
• Trust(s)
• Trustees
• Incentive provisions
• Re-do wills/living trusts
• IP Company
• Re-Cap corporate ownership as necessary
• Convert to LLC – need to establish tax consequences
• Create necessary license agreements
• Business
• Re-Cap corporate ownership as necessary
• Plan for church and causes
• TCLAT vs. Outright Gift
• Apply for insurance
51
52. Incentive Plan ‐ James
• Outright ownership
• Control
• Asset protection
• Ownership in trust
• Share “carve out”
• Phantom/Synthetic stock
• Success Metrics
52