Estate Planning for multi-generational business
When our clients are seeking opportunities to preserve wealth for subsequent generations, Bilzin Sumberg's Estate Planning team is there to provide innovative planning techniques and legal counsel. Our clients include a unique array of closely-held businesses and high net worth individuals, including real estate developers, CEOs, investors, franchise NBA players and former athletes.
Our Estate Planning team recently represented a multigenerational, closely-held business in the structuring and implementation of a purchase and sale transaction. Through the transaction, which involved the creation of a family limited partnership and a trust for family members, Bilzin Sumberg was able to reduce the family's tax liability by hundreds of millions of dollars.
The family limited partnership was funded with marketable securities and other family business holdings. A separate series of partnership interest were created to insulate certain assets from any liabilities of other assets. Additionally, a specialized management agreement was implemented for the general partner entity utilizing a non-equity controlling interest. Partnership interests were then sold by the senior family member to a trust for the benefit of descendants in return for a private annuity obligation. The plan will save substantial estate taxes, while preserving family wealth and facilitating management succession to subsequent generations. Helping long-time clients preserve wealth is just one more reason we’re glad to be judged by the company we keep.