Family Succession Planning

To help you and your family prepare for the orderly and harmonious transfer of your real property assets through the generations.

........Helping to successfully transition real estate investments from parents to children and grandchildren has become a dominant request and need of our clients. Given the dissimilar backgrounds, interests and work ethics, aging clients are seeking our help to work with and educate their kids and grandkids. When necessary and prudent we are asked to qualify and quantify repositioning options that will facilitate more compatible assets for the next generations to inherit.

CASE STUDY

Carol and her sister Pat were about to inherit family wealth from their surviving parent in the late 1990’s. Pat, a real estate professional at the time, had been a client of the firm for several years. Given the anticipated large estate tax obligation that would have been due at their parent’s passage, Pat and Carol engaged our firm to evaluate and recommend strategies to help minimize the potential liability.

After several planning meetings where we reviewed, analyzed and compared alternative estate tax minimization strategies, the family decided to form a Family Limited Partnership (FLP) and invest in real property assets. Once the real estate assets were acquired, the parent established a systematic gifting plan of its majority interest in the partnership. Over a number of years the family was able to reduce the parent’s interest in the partnership to an acceptable level for the eventual payment of a discounted estate tax when their parent passed.

Immediately after the parent’s passage, the beneficiary sisters incorporated their own gifting program to enable the efficient and cost effective transfer of the wealth to their eventual heirs. During all this time the real property assets that were invested in were continuously repositioned to optimize distributable tax sheltered income and growth in value.

Most recently the family succession planning was advanced to incorporate asset separation techniques to facilitate appropriate distributions to the next generations. In addition ownership structures were updated to allow for a harmonious separation of ownership entities.

Throughout the last 20 years the family continued to encourage next generation involvement in major evaluations and decision making thus enabling key players to take over when and if needed.

TESTIMONIAL

“With Joe and his firm’s…my family has been able to reposition our holdings on successive occasions in such a manner as to achieve increased cash flows, enhanced tax sheltered income, and growth in our family wealth.”

RealTax Advisory Services LLC and its principal member, Joe Mandelbaum, has helped me and my extended family analyze investment and estate planning alternatives on numerous occasions. With Joe and his firm’s oversight and planning services my family has been able to reposition our holdings on successive occasions in such a manner as to achieve increased cash flows, enhanced tax sheltered income, and growth in our family wealth. Equally important the firm helped us establish and update an ownership structure that was conducive to an eventual effective and equitable separation of assets between resulting heirs. I highly recommend that any family that is concerned about the harmonious and effective transfer of family wealth contact Joe and his team.

Carol, Westminster, CA

Call today for an initial consultation to find out how we can help you.

(310) 545-5400