Walter Redkin owns a successful business. His son, Rick, works in the business and his wife, Barbara, is on the payroll. His daughter is a struggling writer and he helps to support her in her endeavors. His mother is retired, with minimal income from Social Security, and lives in their home. Rick has minimal insurance. He has started to think about estate planning but his biggest problem is… how does he treat all members of his family appropriately.
If he were to pass away, his son would run the business without his services and would have to continue to pay to take care of his wife and mother, and would have to continue to pay his daughter monies for which she is not working. For him to do 100% of the work and have to minimize his returns seems quite unfair. This is a very common problem with many businesses.
Concentrix partners showed Walter and Barbara how to structure an estate plan with appropriate wills, trusts and insurance to achieve their objectives. Now, upon Walter’s death, Rick inherits 100% of the business and the wife, Barbara, receives a capital sum that, if invested appropriately, will generate adequate income to replace what the business would have paid her, and enough to take care of his mother… and the daughter receives an adequate tax-free capital sum to allow her to continue to pursue her writing career.
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