Ben, a real estate developer and his wife Alice have homes in Jupiter, Florida, and Roslyn, New York. Ben developed major commercial properties throughout the East Coast and the family net worth is valued at over $47 million. Recently, anxious over the weak economy and struggling real estate market, Ben and Alice contacted their Fort Lauderdale-based law firm about executing an estate plan. Since the couple adored their two sons and four grandchildren, designing a plan made good sense.
Leonard K., the managing partner at the firm telephoned our offices to discuss his client's situation, goals and objectives. Leonard knows our work is technically sound and that we excel in communicating dry complex information in simple, understandable English.
We discussed the situation with Leonard and then he requested another meeting with Ben. But this time we would participate.
Once our team understood what Ben was attempting to accomplish, we showcased a number of strategies that would reach his objectives, while continuing to provide the necessary control and excess cash flow he required. Generally speaking, Ben wanted to dramatically reduce his estate taxes, while benefiting both his heirs and three favorite charities.
We ultimately suggested and subsequently implemented a number of tools and techniques. They included 2 LLCs, a Grantor Retained Annuity Trust (GRAT), a Charitable Lead Annuity Trust( CLAT), a Charitable Remainder Trust (CRT), a Wealth Replacement Trust (ILIT), a Dynasty Trust and a Private Family Foundation.
Since we were working with an experienced law firm, they knew how to draft the trusts and related documents correctly. The plan, as executed, guaranteed the family's assets would be protected from creditors, future estate and gift taxes, heirs getting divorced and other problems that can occur and dissipate assets.
When implemented, Ben and Alice understood their well designed plan and knew that they had done very good things for themselves, their children and grand children. The law firm was pleased because they had a very happy client and were able to receive the fees associated with implementing a broad based plan. And we were thrilled to have completed another successful advanced estate plan, while making all of the advisors shine.