Case Stories - Creating Solutions
Gaining Freedom Through Estate Planning
Client's Objective: Design a plan to manage the financial affairs of a retired stockbroker while he moved abroad to live and study art.
Solution: The retired stockbroker had no living family members to manage his affairs so a revocable trust was prepared and all of his U.S. assets were transferred to that trust. Assistance was also provided in identifying a trustee.
Outcome: This plan provided the client with the peace of mind to pursue his dream of studying abroad in Europe while his assets were carefully managed and protected in the U.S.
Solution: The retired stockbroker had no living family members to manage his affairs so a revocable trust was prepared and all of his U.S. assets were transferred to that trust. Assistance was also provided in identifying a trustee.
Outcome: This plan provided the client with the peace of mind to pursue his dream of studying abroad in Europe while his assets were carefully managed and protected in the U.S.
Succession of the Family Business
Client's Objective: Equalize the inheritance of the family business among three children when only one child is active in the business.
Solution: Designed an arrangement in which the inactive children received stock in the business as their inheritance. The inactive children were also given the right to cause the corporation or their sibling who was active in the business to buy the stock that they had received. The stock buy-back arrangement created an internal family market to cash out the stock owned by the inactive children. Appropriate voting trusts were also designed so that the child who was active in the business could run the business without involvement from the siblings.
Outcome: The parents were able to equitably distribute the value of the family business among their three children.
Solution: Designed an arrangement in which the inactive children received stock in the business as their inheritance. The inactive children were also given the right to cause the corporation or their sibling who was active in the business to buy the stock that they had received. The stock buy-back arrangement created an internal family market to cash out the stock owned by the inactive children. Appropriate voting trusts were also designed so that the child who was active in the business could run the business without involvement from the siblings.
Outcome: The parents were able to equitably distribute the value of the family business among their three children.
Conservation Easements
Client's Objective: Preserve over 100 acres of undeveloped, forested land as open space and wildlife habitat.
Solution: A husband and wife were traveling to Europe for an extended trip. Both were long time advocates of open space and wanted to ensure that their land would not be sold for condominium or mansion development after their death. Special provisions were drafted in their Wills directing the personal representative/executor to grant a conservation easement on the land to a local land trust. The clients received assistance in creating the easement plan, which included identifying three different lots for possible home sites for their children. Maintaining elk migration routes over the land and other land conservation goals were developed in a short period of time prior to the clients' planned travel.
Outcome: The clients were able to travel secure in the knowledge that their land conservation goals would be carried out should death occur prematurely.
Solution: A husband and wife were traveling to Europe for an extended trip. Both were long time advocates of open space and wanted to ensure that their land would not be sold for condominium or mansion development after their death. Special provisions were drafted in their Wills directing the personal representative/executor to grant a conservation easement on the land to a local land trust. The clients received assistance in creating the easement plan, which included identifying three different lots for possible home sites for their children. Maintaining elk migration routes over the land and other land conservation goals were developed in a short period of time prior to the clients' planned travel.
Outcome: The clients were able to travel secure in the knowledge that their land conservation goals would be carried out should death occur prematurely.
Preservation of the Family Business
Client's Objective: Manage and preserve the value of a second generation business while the owner underwent cancer treatment.
Solution: Acted quickly to design business documents that identified a key employee to manage the business. Prepared a special, limited power of attorney that the business owner signed which designated and empowered an agent to vote the business owner's stock and make major decisions concerning the business. These documents gave the business owner comfort in knowing that the operation and management of the business would proceed smoothly during his cancer treatment.
Outcome: The business owner was able to enter cancer treatment with peace of mind that the business value was protected and chaos would be avoided. By signing these documents in advance of treatment, the business owner avoided potentially protracted and expensive litigation among family members regarding control of the business.
Solution: Acted quickly to design business documents that identified a key employee to manage the business. Prepared a special, limited power of attorney that the business owner signed which designated and empowered an agent to vote the business owner's stock and make major decisions concerning the business. These documents gave the business owner comfort in knowing that the operation and management of the business would proceed smoothly during his cancer treatment.
Outcome: The business owner was able to enter cancer treatment with peace of mind that the business value was protected and chaos would be avoided. By signing these documents in advance of treatment, the business owner avoided potentially protracted and expensive litigation among family members regarding control of the business.
Estate Planning for Unmarried Individuals
Client's Objective: Create a mechanism for a committed couple of 15 years to ensure that upon death, assets would be transferred to the surviving partner.
Solution: In addition to Wills containing special provisions, certain types of trusts were designed so that assets could be transferred to the surviving partner.
Outcome: The couple had the comfort and confidence that the other would be financially secure upon the death of one of them.
Solution: In addition to Wills containing special provisions, certain types of trusts were designed so that assets could be transferred to the surviving partner.
Outcome: The couple had the comfort and confidence that the other would be financially secure upon the death of one of them.
Consequences of Not Having Estate Planning Documents
Client's Objective: Protect the children of a single father when the father became incapacitated and was unable to speak for himself. Provide a means for smooth transition of the father's assets to his children.
Solution: This is a cautionary tale. The solution would have been in place had the father planned his estate to include a Will and powers of attorney that would have specified his wishes in the event he became incapacitated. Instead, the father's sister initiated a court proceeding to be named the conservator of his assets and his legal guardian. Conflict ensued and the father's children fought the court proceedings to protect their rights and wishes. Collectively, the father's sister and his children spent $10,000 to "do the right thing."
Outcome: While the father regained his health and the legal filings were dropped, the cost and emotional heartache for the entire family cannot be measured.
Solution: This is a cautionary tale. The solution would have been in place had the father planned his estate to include a Will and powers of attorney that would have specified his wishes in the event he became incapacitated. Instead, the father's sister initiated a court proceeding to be named the conservator of his assets and his legal guardian. Conflict ensued and the father's children fought the court proceedings to protect their rights and wishes. Collectively, the father's sister and his children spent $10,000 to "do the right thing."
Outcome: While the father regained his health and the legal filings were dropped, the cost and emotional heartache for the entire family cannot be measured.