Client Profile: Entrepreneur
- Age 42
- Married with three kids: ages 12, 10, and 8
- Annual Income: $800,000
- Lifestyle Expenses: $400,000
- Business Value: $15,000,000
- Personal Net Worth (excluding business): $2,000,000
Situation
After starting a small life sciences company eight years ago, our client was presented with an offer to sell his company in exchange for $15,000,000 worth of cash and shares of stock in the company of the acquirer. He was referred to marrick wealth by his attorney to help him evaluate if accepting this offer would leave him with enough money to fund his young family’s goals.
Action
- Helped quantify the appropriate dollar amounts needed to fund family goals, including retiring within one year of sale, maintaining current lifestyle, pay for college tuition, weddings, and ensuring inheritance for all three kids.
- Help client close unnecessary accounts and consolidate assets into trust in order to avoid the costs and time delays of probate court upon mother’s death.
- Ongoing coordination and communication with the family attorney and CPA to ensure client’s plan is seamlessly executed.
Result
- A written financial plan that determined the amount of the estate needed to support mother in her remaining years and the amount of the estate that was deemed “excess” and would eventually be inherited.
- Advised on which assets and transfer methods to gift thereby accelerating the inheritance as well as increasing it by $500,000 via a reduction in estate taxes.
- Client was relieved to know that her mother’s estate was being prudently managed and pleased that her family was taking full advantage of the tax laws which allowed them to reduce their estate tax burden.
