Fred (72) and Nancy (71) Builder had created a successful real estate development company.  Nancy had inherited significant tracts of land bordering a North Carolina city from her family and Fred had worked hard, over a thirty year period, to develop the property and acquire complementary property to develop.  The Builders represent a model for the multi-generational relationship that lies at the heart of our service platform.

  • Fred’s and Nancy’s mothers were both alive and had daily assistance at their residences.  They both had adequate means to afford private skilled nursing, without long term care insurance.
  • Because the Builders owned an ongoing active business operation, they had a rental/sales/management office at their main site.  This office provided them with accounting, tax and legal professionals.  We were always careful to maintain separation between the “office” staff and the “personal family” staff, or the same staff performing either of the two functions interchangeably.  We handled the firm’s profit sharing plan and 401(k) plan and advised on all insurance matters.
  • We anticipated that the eventual taxable estate, upon the death of the surviving spouse, would exceed $50 million.  Accordingly, we assisted in-house counsel in the preparation of a Dynasty Trust.  We used second-to-die life insurance and the discounted value for raw land housed in an LLP structure, to fund the Dynasty Trust without incurring current gift taxes.  The $50 million second-to-die life insurance will provide liquidity upon the death of the second spouse, to pay significant estate taxes.
  • The Builders had two adult sons, Daniel (49), married to Mary with five children, and Ted (46), married to Laura, with four children.  Daniel lived in North Carolina, worked in the family business for years and assumed control of it upon Fred’s passing.  Ted was an adjunct college professor and Laura was a successful lawyer, living in Los Angeles.  Ted was not involved with the day-to-day real estate business, but still owned a significant minority interest.  We spent a great deal of time working with the two brothers as to fair compensation and buy-out issues between Daniel and Ted.  We also assisted both sons in various house and investment financings and restructures, as well as college planning for their children.
  • Nancy’s family had historically been incredibly philanthropic, establishing private foundations, charitable lead and charitable remainder trusts.  Fred and Nancy furthered the existing situations and formed and funded their own.  Daniel and Ted were involved in the charitable activities at an early age, developing their own philanthropic zeal.  We assisted the independent Board of the private foundation, to manage and disburse the sizable assets.

Over a long period, we developed our relationship with the Builder family so that we were immensely important to them as a resource on four generational levels.  We became their “go-to” advisor on a myriad of fronts.