High Net Worth Advanced Planning Case Study


Many times clients come to us with complex planning issues that we would like to solve for. Here is a good example of how one couple achieved their goals and objectives through advanced planning using a well thought out process to get them there.


Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.

The primary planning goals are to:

Provide for the financial security of the surviving spouse.

Maintain Carter Manufacturing as a viable company in their hometown after they exit the business.

Maintain their customary lifestyle and gifting. This should take approx. $650,000 annually after taxes.

Eliminate or reduce estate taxes.

Maintain adequate gifting to their children and grandchildren. Their main priority is providing funds for their grandchildren’s educations.

Maximize the inheritance they leave to their children and grandchildren.

Establish a family foundation for lifetime and future family charitable giving.

The solutions are noted in the plan design.

Scott Hamilton

CEO - InKnowVision, LLC

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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