A successful Connecticut entrepreneur needed an Estate Plan that averted unnecessary tax. His current "Sweetheart" will left everything to his spouse and incurred significant tax. The family was not willing to leave large portions to charity and the senior members of the family wanted to maintain control over much of the estate.

Strategy:

• New wills and family trust
• Family Limited Partnership to allow gifting without loss of control
• Residential Trust to transfer a seven figure gain to the family with lifetime use for the Entrepreneur
• Business insurance plan to fund Estate Tax

Result:

• Savings of $1.9 million in transfer and Estate tax
• Control maintained by Patriarch
• Transfers effective and efficient

Strategy:

• Multi step solution included changing state of residence prior to closing. Change was to a non tax focused state that had the parents dream home.
• Cashless Collar on the public stock with a floor of 90% of the stock price and a five year upside of 200% of the current market price.
• An advance on the 90 % floor value of almost $13 million

Result:

• Minimum risk exposure on the public stock
• Cash for current home and lifestyle
• Deferral on tax until ultimate sale
• Ability to benefit from a rise in the stock
• $ 1 million cap gain tax savings on sale of home

A couple in a community property state were divorcing. The wealth was based in stock and stock options of a High Tech public company. The wife did not want the risk of the  equity market, needed a fixed monthly income to pay mortgage and living expenses, and did not want to worry about managing investments.

Strategy:

• Tax efficient orderly exercise sale of stock
• Structured a tax efficient portfolio of fixed income securities. A ladder structure provided monthly interest pay out.
• Negotiated settlement between husband and wife and shared tax liability from proceeds

Result:

• No management of the portfolio by the spouse
• Income each month to pay expenses
• Couple not arguing over payments and future values