Howard S. Fisher, Esq. & Alexander J. Fisher, Esq. 1 The Case - PowerPoint PPT Presentation

Howard S. Fisher, Esq. & Alexander J. Fisher, Esq. 1

The Case Study # 3 Closely held business couple in their 30s of Russian origin medical technology "S" corporation grossing $30,000,000 netting $10,000,000; potentially worth $100,000,000; residence worth $8,000,000; liquid assets of $10,000,000; building on which business is located $5.0M; retirement plan $1.0M. 2

How To Look At The Facts Closely held business couple in their 30s of Russian origin medical technology - "S" corporation grossing $30,000,000 netting $10,000,000; potentially worth $100,000,000; residence worth $8,000,000; liquid assets of $10,000,000; building on which business is located $5.0M; retirement plan $1.0M. 3

Who Are The Potential Creditors?  Users of the technology of S-Corp  S-Corp’s vendors  Investors in S-Corp  Employees of S-Corp  “Guests at the properties” 4

Who Are You Planning For?  The Russian couple?  The Business?  Business itself – its assets  Officer/directors  Shareholders  Conflicts 5

Bill’s World of Strategies • Product-Component Focused • Checklist Focused • Concept Focused • Potential-Creditor Focused • Asset Focused • Client-Risk-Management Focused • Integrated With Estate Plan 6

Personal Issues • Couple in their 30s • Married - Community Property? • Premarital Agreement? • Post-Marital Agreement • Russian origin • Immigration / tax residence status? • Willingness to move or expatriate 7

Estate Planning Issues  Stability of the marriage  Family – kids?  Heirs in the US? Non-US  S-Corporation  Qualified Sub-S Trust  Grantor trust  Electing Small Business Trust  Convert to LLC or S-Corp.  Long Term Planning Opportunities (next slide) 8

Long Term Planning Opportunities  Integrate With Standard Business & Estate Planning  Dynasty trusts  FLP / FL-LLC  Sale of assets to …  Annuity  Self-cancelling Installment Note 9

Business Planning Issues  Non-AP Problems – Be sure who owns IP - S-Corp status  AP Planning for the Business  Technology – the IP = Spin-off To FACT  Personal property?  Real property  Stream of Income/cash flow  Value of the shares 10

What You Might Consider  Individuals  Post-nuptial  Domestic APT vs. Foreign APT Sale To Irrevocable Dynasty Trust  Pension – Don’t Do Anything  Private Retirement Plan - - - with Foreign sub-trust 11