Integrated Estate Planning

Design a Tailored Plan

Comprehensive Perpetuation Planning most often requires integration of corporate and estate strategies. Although we begin with thorough analysis and planning, a positive outcome also demands technical know-how and fastidious attention to detail. Every situation – corporate or personal—is different. Every situation relies on experience to build a custom plan that works.

The following actual case history best illustrates how CPP resolved critical issues for one PCC client. For other studies, you may enter your user name and password to access our exclusive Closed Case Files.

Corporate/Family Compatibility

This owner was willing to relinquish control but wanted several things: a lifetime income stream; a substantial stake in the business for his son; assurance that company execs continue successful operations; ownership opportunities for career employees; prevention of political problems that could arise from broadened ownership of shares; and an equitable financial arrangement for his daughter who was not active in the company.

We helped this founder achieve his goals by recommending and implementing a tailored plan composed of several elements:

• An ESOP Focus Feasibility study illustrated a number of potentially viable transactions.
• PCC designed and coordinated a five-year plan to assure that perpetuation would take place in a timely manner.
• A tender offer, at fair market value, was made to all non-employee shareholders.
• Company executives purchased these shares in a revenue-neutral transaction and PCC created an Incentive Stock Option Program.
• A Voting Trust assured our client that control could not be diluted.
• An Incentive Compensation Plan motivated executives and helped them pay for their shares.
• Maximum lifetime gifts went to a family trust assuring business continuity and liquidity for the founder’s estate.
• The founder’s daughter got cash; his son got company stock.
• The ESOP gave the founder his liquidity and career employees their ownership.
• A Supplemental Executive Retirement Plan (SERP) provided security for the founder.

When the founder of this company passed away, CPP assured the succession of the business, the security of the family and the success of valued management and employees. Most of all, the personal loyalty of the founder’s executives and career employees became a partnership loyalty to his son.