After a series of significant liquidity events, a couple was seeking assistance regarding when and how to communicate with college-age children about their newly realized wealth. The couple asked for guidance on how much and when to transfer wealth to children, as well as help discussing philanthropic aspirations.

BBH took a step back and began with an in-depth discussion with the couple in order to understand better the family’s history and values, hopes and dreams for the role of wealth in their lives. Next, we facilitated a broader discussion exploring long-held beliefs, family tension, expectations and opportunities for greater connectivity. Finally, we worked with the family’s estate planning attorney and accountant in order to help ensure the final wealth succession plan reflected the family history, values and goals and would enrich rather than burden the children.

A business owner approached BBH when she made the decision to sell her company. Initially, she wanted help determining the value of the business and hiring an investment banker, but after we reviewed the tax implications of the sale and her goals for her family and future business endeavors, she asked to learn more about pre-sale tax planning options.

Using the business owner’s goals and values as a backdrop, we outlined and discussed each of the mechanisms that might make sense for her situation. We then coordinated with her accountant and trusts and estates attorney to craft a tax-efficient plan that was designed to accomplish her objectives related to her family and philanthropy. She transferred an interest in the business to a trust for the benefit of her descendants and another piece of the business to a donor-advised fund prior to the sale. These structures allowed her to maximize the benefit for her family and charity while simultaneously minimizing both the capital gains tax consequences of the sale and the transfer tax consequences of the gift to her family.