Julie’s father founded a business in the 1960s, and Julie and her husband, Dan, have been running the company for the past two decades. Under their leadership, the company has grown tremendously and has generated more than $15 million of wealth for Julie and Dan.
Their family has grown during this time, as well. Julie and Dan now have four children and 10 grandchildren. They asked us to help them prepare the children and grandchildren to be responsible stewards of the family’s wealth and to use it to create a legacy across generations.
Passing on more than just wealth
We worked with Julie and Dan to define their vision for the family’s legacy. This wasn’t done during one meeting; this vision was developed over a series of conversations that explored not just their financial objectives, but the values Julie and Dan hold dear about money and making a difference in the community.
With this vision in place, we developed strategies for pursuing those objectives while minimizing taxes. We identified ways Julie and Dan could support the children and grandchildren without simply giving them gifts that could be used however the recipient wishes. In addition to funding the grandchildren’s 529 college savings plans, we helped Julie and Dan set up intrafamily loans, a strategy that takes advantage of the current low interest rates and provides support for the children while also creating a sense of accountability.
Through a series of family meetings, we helped Julie and Dan share their vision for the family’s wealth with their children and grandchildren. We facilitated sessions to educate the younger generations about the trusts that had been set up as well as other financial topics, such as securing a mortgage and establishing their retirement plans.
Coordinating a team of advisors
As Julie and Dan began to plan for their own retirements, we worked with them and their advisors to think through business succession. We explored options such as selling to a third party, selling to a group of current employees, or preparing some of the children or grandchildren to assume leadership positions. We helped Julie and Dan think about the tax implications of the various strategies and began planning for the liquidity that would be created by the eventual transition.
By working directly with their attorney, accountant, and other advisors and coordinating their efforts, we allowed Julie and Dan to focus on their family, their business, and their vision for the future.
The opinions voiced are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by LPL. To determine which investments may be appropriate for you, consult with your financial professional. Please remember that investment decisions should be based on an individual’s goals, time horizon, and tolerance for risk. LPL does not provide tax or legal advice.