Asset Protection : Monk Financial Strategies Group, Houston, TX

Asset Protection

The Situation:

Our clients Mr. & Mrs. V own a manufacturing firm that specializes in products for the proper disposal of oilfield chemicals. Due to their success they have been able to build their business value to $50m and accumulate personal wealth of nearly $8m. They recently came to an agreement to sell their business while remaining in operational control for the next five years while ownership is transferred.

To add to the mix, they have three married children and seven grandchildren. Our discussion started as their eldest son was facing a rough spot in his marriage. Their daughter’s husband is well intentioned and always has “big ideas” for making money, but struggles with execution and financial management. Their youngest daughter has two children, one of which has struggled with chemical dependency, but had recently left rehab with the hopes of avoiding future troubles.

While we were in the process of updating their estate plan we all agreed it was time to address the concern that their children’s inheritances could be squandered or ruined by creditors, financial predators and divorcing spouses.

The Solution:

While Mr. & Mrs. V are in the process of selling their business, we wanted to begin addressing their concerns now rather than when they became realized. Our first order of business was to discuss their potential estate tax concerns and how to transfer their wealth to the next generations efficiently. We implemented a Second-to-Die plan to address the transference to the heirs, but more importantly to protect the assets we recommended seeking counsel to draft and execute an irrevocable trust. Since they have concerns about existing and future heirs ability to properly manage money spendthrift clauses were added to the trust allowing them to carry on with their future plans knowing the hard work and hours they poured into their business will be preserved.

Will Your Heirs Be Able to Protect Your Legacy?

Certain elements of this case study have been amended and are provided for general informational purposes only. These specific examples will not be suitable for everyone. Together we can ensure that any course of action is based on your financial needs, objective, time horizon, risk tolerance and individual situation. Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.