Certain planning situations when a client is scheduled to receive substantial sums of wealth ($5M-$15M+) call for advanced planning techniques.
Our client may feel a need to transition from wealth creation to wealth preservation.
These scenarios include a large inheritance, liquidation scenarios such as company sale either a personal company or a corporate sale when the client holds a sizeable amount of company stock, and/or simply the payment of a large bonus.
Advanced planning techniques include the consideration of various trusts including Irrevocable Trusts to safeguard portions of the assets for future generations and specific business trusts that allow the postponement of certain taxes for many years into the future.
Additional investment techniques like separately managed accounts to slowly and tax efficiently diversify out of either inherited positions that no longer fit the client’s long term goals and risk tolerance, or to tax efficiently diversify out of concentrated positions may also be implemented. Such may be the case with a corporate buyout or bonuses when the client is paid in company stock.
Beyond the initial tax, portfolio allocation, and safeguarding techniques come legacy considerations and planning through charitable and/or family gifting techniques, family foundation, donor advised funds, and/or Dynasty Trusts.
The key with all of these techniques is not simply the tools themselves but the details and personalization within each structure and strategy. And with all planning, these techniques do not have to be complicated to be effective.
MFG’s internal advanced planning team and collaboration with subject matter industry experts can guide you through these generational life altering moments by providing solutions that best match your needs while placing your personal values, goals, and priorities at the center of your planning.