Resnick Associates - Master Builders of Iowa
Resnick Associates - Master Builders of Iowa
Resnick Associates - Master Builders of Iowa
- No tags were found...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
MASTER BUILDERS OF IOWA<br />
100 TH Annual<br />
Construction Industry Convention & Expo<br />
<strong>Iowa</strong> Events Center - Des Moines, IA<br />
February 21, 2012<br />
<strong>Resnick</strong> <strong>Associates</strong>
Company Succession Planning:<br />
Guarding Business and Non-<br />
Business Assets from the<br />
Ravages <strong>of</strong> the IRS<br />
<strong>Resnick</strong> <strong>Associates</strong>
<strong>Resnick</strong> <strong>Associates</strong><br />
1. Second Generation Estate Planning, Business<br />
Succession and Life Insurance Planning Firm<br />
2. Clientele throughout the United States<br />
3. Speakers and advisors to the construction<br />
industry, MBI, and business owners throughout<br />
the country.<br />
4. Written articles nationally and regionally<br />
5. Featured in book Streetwise Marketing Plan<br />
<strong>Resnick</strong> <strong>Associates</strong>
Important Questions to Ask Yourself<br />
1. Are you working the majority <strong>of</strong> your lifetime to build<br />
your business only to eventually lost it<br />
2. Are you putting your family in the eventual position<br />
<strong>of</strong> no longer being on speaking terms<br />
3. Will your business and family maintain a healthy<br />
cash flow when you are gone<br />
4. Do you trust politicians<br />
<strong>Resnick</strong> <strong>Associates</strong>
Why Do Businesses Fail<br />
• Mismanagement<br />
• Poor Investments<br />
• Inefficient Succession/Estate Planning<br />
WHICH IS THE LEADING<br />
CAUSE<br />
<strong>Resnick</strong> <strong>Associates</strong>
The Answer Is……<br />
INEFFICIENT<br />
SUCCESSION/ESTATE PLANNING!<br />
<strong>Resnick</strong> <strong>Associates</strong>
23.3 Million U.S. Businesses<br />
10% Public/90% Private<br />
<strong>Resnick</strong> <strong>Associates</strong>
2 OUT OF EVERY 3 FAMILY BUSINESSES<br />
DO NOT MAKE IT FROM THE FOUNDER TO<br />
THE 2 ND GENERATION!<br />
• Original Owner Can’t “Let Go”<br />
• Lack <strong>of</strong> Plan or Inadequate Planning<br />
• The Next Generation is Ill Prepared<br />
<strong>Resnick</strong> <strong>Associates</strong>
IMPORTANCE OF<br />
SEPARATING COMPANY<br />
FROM FAMILY<br />
• Challenge for Parents: COMMUNICATION<br />
• Family Meetings<br />
<strong>Resnick</strong> <strong>Associates</strong>
10 POINT<br />
BUSINESS SUCCESSION<br />
PLANNING CHECKLIST<br />
Have These Issues Been<br />
Addressed<br />
<strong>Resnick</strong> <strong>Associates</strong>
Issue #1<br />
Define Personal Goals and Vision for the<br />
Transfer <strong>of</strong> Ownership and Management<br />
<strong>Resnick</strong> <strong>Associates</strong>
Issue #2<br />
Identify Your Successor<br />
If you are a Family Business, is a Family<br />
Member the best choice to take over<br />
Typically the answer is “Yes”, but it should not<br />
be automatic – the business must be run as a<br />
business first!<br />
<strong>Resnick</strong> <strong>Associates</strong>
Issue #3<br />
The Importance / Unimportance <strong>of</strong><br />
Family Involvement in Leadership and<br />
Ownership <strong>of</strong> the Company going<br />
Forward<br />
<strong>Resnick</strong> <strong>Associates</strong>
Issue #4<br />
Techniques to Reduce or<br />
Eliminate Estate Taxes<br />
<strong>Resnick</strong> <strong>Associates</strong>
Issue #5<br />
Liquidity Positioning to Avoid the Forced<br />
Sale <strong>of</strong> the Company and Provide for<br />
Estate Equalization<br />
<strong>Resnick</strong> <strong>Associates</strong>
Issue #6<br />
Buy-Sell Agreements<br />
A. Stock Redemption<br />
B. Cross Purchase<br />
C. Wait and See<br />
<strong>Resnick</strong> <strong>Associates</strong>
Issue #7<br />
Contingency Plan in the Event <strong>of</strong><br />
Disability<br />
<strong>Resnick</strong> <strong>Associates</strong>
Issue #8<br />
Stock-Transfer Techniques to Help<br />
Achieve Succession Goals<br />
<strong>Resnick</strong> <strong>Associates</strong>
Issue #9<br />
Dependency on Business to Meet<br />
Retirement Cash Flow Needs<br />
<strong>Resnick</strong> <strong>Associates</strong>
Issue #10<br />
Business Valuation<br />
Is Succession to Family Members<br />
or Outsiders<br />
<strong>Resnick</strong> <strong>Associates</strong>
Some Leading Causes for<br />
Unsuccessful Succession<br />
• No Succession Plan in Place<br />
• Ineffective/Outdated Plan<br />
• Unable to Retain Key Execs/Personnel after<br />
owner exits the business<br />
• Insufficient Personal Estate Plan –<br />
Company left to Inactive Spouse and/or<br />
family members<br />
<strong>Resnick</strong> <strong>Associates</strong>
New Tax Law<br />
Tax Relief, Unemployment<br />
Insurance Reauthorization,<br />
and Job Creation Act <strong>of</strong> 2010<br />
<strong>Resnick</strong> <strong>Associates</strong>
An Inside Look<br />
• Exemption Amount Increased to<br />
$5m/individual (during life, death or<br />
combination)<br />
• Portability<br />
• Tax Rate 35%<br />
• Favorable Tax Treatment Sunsets in<br />
2 years<br />
<strong>Resnick</strong> <strong>Associates</strong>
December 6, 2010<br />
The Wall Street Journal<br />
• President Obama said that even he does not<br />
like “the extension <strong>of</strong> the tax cuts for the<br />
wealthiest Americans and the wealthiest<br />
estates.” He said, “Republicans have asked<br />
for more generous treatment <strong>of</strong> the estate<br />
tax than I think is wise or warranted.” But<br />
he finds consolation in the fact that the<br />
“generous treatment” is “temporary.”<br />
<strong>Resnick</strong> <strong>Associates</strong>
November 17, 2011<br />
• United for a Fair Economy and Responsible<br />
Wealth applaud the introduction <strong>of</strong> the<br />
Sensible Estate Tax Act <strong>of</strong> 2011 by<br />
Congressman Jim McDermott, a senior<br />
member <strong>of</strong> the House Ways and Means<br />
Committee.<br />
• The Sensible Estate Tax Act <strong>of</strong> 2011 brings<br />
the estate tax rates back to pre-Bush era<br />
levels, with a maximum marginal rate <strong>of</strong> 55%<br />
and a $1 million exemption, both indexed to<br />
inflation beginning in 2000.
FACT<br />
FAMILY HELD AND PRIVATELY<br />
OWNED BUSINESSES REMAIN<br />
IN A VULNERABLE POSITION<br />
<strong>Resnick</strong> <strong>Associates</strong>
What does this mean for<br />
today’s attendees<br />
• By not addressing today’s issues with<br />
proper estate, business and insurance<br />
planning, you will be making inevitable<br />
costly mistakes!<br />
• Utilize the same focus in preserving and<br />
transitioning your assets as you do in<br />
building your assets<br />
<strong>Resnick</strong> <strong>Associates</strong>
Acquiring Assets<br />
Planning For Estate<br />
<strong>Resnick</strong> <strong>Associates</strong>
Common Goals<br />
• Certainty <strong>of</strong> Distributions<br />
• Reduce or Eliminate Estate Taxes<br />
• Ensure all Children are Treated Fairly<br />
• Provide for Care <strong>of</strong> Minors & Disabled<br />
• Preserve Family Business for the Family<br />
<strong>Resnick</strong> <strong>Associates</strong>
Common Mistakes<br />
• Unrecognized Estate Size and Tax Hit<br />
• Poor Liquidity Position<br />
• Improperly Arranged Life Insurance<br />
• Lack <strong>of</strong> a <strong>Master</strong> Game Plan<br />
<strong>Resnick</strong> <strong>Associates</strong>
Types <strong>of</strong> Trusts<br />
• Revocable - Grantor CAN change or<br />
terminate the Trust<br />
• Irrevocable – Grantor CANNOT change or<br />
terminate the Trust<br />
<strong>Resnick</strong> <strong>Associates</strong>
Revocable or Irrevocable Trust<br />
Depends on the Planning Purpose<br />
<strong>Resnick</strong> <strong>Associates</strong>
Estate Analysis<br />
• Assets – Both business and non business<br />
• Assets to go to whom you want, when you<br />
want, and how you want<br />
• Current Plan – Are you 100% certain this<br />
will happen<br />
<strong>Resnick</strong> <strong>Associates</strong>
Ownership<br />
How You Own What You Own<br />
Decides How You Pass What You Pass<br />
<strong>Resnick</strong> <strong>Associates</strong>
Property in Your Gross Estate<br />
Cash<br />
Real Estate<br />
Personal Property<br />
Retirement Plans<br />
Business Interests<br />
Investments<br />
Tangible Assets<br />
Revocable Trusts<br />
Annuities<br />
Life Insurance<br />
<strong>Resnick</strong> <strong>Associates</strong>
Annual Exclusion<br />
• Gifts <strong>of</strong> up to $13,000/year<br />
• Present Interest<br />
• No Tax, No Paperwork<br />
• Joint Gift; $26,000/year<br />
<strong>Resnick</strong> <strong>Associates</strong>
Consistent Lifetime Transfers<br />
Significant estate tax savings can ultimately<br />
be realized with combination <strong>of</strong> annual<br />
gifting PLUS utilizing the $5m lifetime gift<br />
exemption amount<br />
<strong>Resnick</strong> <strong>Associates</strong>
Unlimited Marital Deduction<br />
• Dollar for Dollar Deduction on Assets<br />
Transferred to a Spouse<br />
• Outright, Unconditional Transfer or<br />
• Qualifying Trust (GPA or Q-Tip)<br />
… included in Spouse’s estate at death<br />
<strong>Resnick</strong> <strong>Associates</strong>
With No Estate Plan<br />
• State Law Determines Who Receives Your<br />
Assets<br />
• State Law Fixes the Timing and Terms.<br />
Children may have unrestricted control <strong>of</strong><br />
large sums <strong>of</strong> money<br />
• The court appoints administrators whose<br />
ideas may differ from yours<br />
<strong>Resnick</strong> <strong>Associates</strong>
With No Estate Plan (Con’t)<br />
• Unnecessary Taxes and required<br />
administrative expenses will increase costs<br />
• The Court appoints a Guardian for your<br />
Children<br />
• Unplanned Forced Business Sale Will<br />
Cause Problems<br />
<strong>Resnick</strong> <strong>Associates</strong>
Advanced Planning<br />
• Grantor Retained Annuity Trust<br />
• Intentionally Defective Grantor Trust<br />
• Private Annuity Sales<br />
• Self Cancelling Installment Notes<br />
<strong>Resnick</strong> <strong>Associates</strong>
SURVEY
Liquidity Needs In Estate<br />
Planning<br />
• Administration Expenses 2-5% <strong>of</strong><br />
Gross Estate<br />
• State Death Taxes<br />
• Federal Estate Taxes (within 9 months)<br />
…<strong>of</strong>ten Deferred to Second Death<br />
• Family Income Needs<br />
<strong>Resnick</strong> <strong>Associates</strong>
Sources <strong>of</strong> Liquidity<br />
Cash<br />
Life Insurance<br />
C.D.’s<br />
Stocks<br />
Bonds<br />
Annuities<br />
Residence(s)<br />
Corporation/LLC<br />
Real Estate<br />
Liquid<br />
Semi Liquid<br />
Illiquid<br />
<strong>Resnick</strong> <strong>Associates</strong>
METHOD TO PAY<br />
Cash<br />
• Reduces Total Bequest to Family<br />
• Reduces Funds Family May Need<br />
for Current and Future Expenses<br />
• Future Earnings on Funds Gone Forever<br />
• Capital to run Company is Gone<br />
<strong>Resnick</strong> <strong>Associates</strong>
METHOD TO PAY<br />
Sale <strong>of</strong> Illiquid Assets<br />
• Reduces Total Bequest to Family<br />
• Complete Loss <strong>of</strong> Future Income<br />
• Unlikely to Receive Fair Value<br />
<strong>Resnick</strong> <strong>Associates</strong>
Result<br />
Valuable Asset is Gone<br />
• Income Lost to Family Forever<br />
• Stranger/Competitor Receives Future<br />
Income and Appreciation<br />
• Family Receives Neither the Family<br />
Business/Property Nor Its Value<br />
• IRS Receives the Cash<br />
<strong>Resnick</strong> <strong>Associates</strong>
METHOD TO PAY<br />
Life Insurance<br />
• Assuming adequate insurability, by far, the<br />
least expensive method to pay estate taxes<br />
• Death Benefit May Be Estate Tax Free if<br />
Ownership is structured correctly<br />
• Preserves Assets - including the Business<br />
• Maintains Family Harmony<br />
<strong>Resnick</strong> <strong>Associates</strong>
Irrevocable Trust with<br />
Life Insurance<br />
• Preserves entire estate<br />
• Preserves business/real estate for family<br />
• Pay Taxes and Administration costs in the<br />
most cost efficient manner<br />
• Maintain Family Harmony<br />
<strong>Resnick</strong> <strong>Associates</strong>
Confusion - What Type<br />
• Term<br />
• Universal<br />
• Variable<br />
• Variable Universal<br />
• No Lapse Universal<br />
• Whole Life<br />
• Whole Life / Term Blend<br />
• Individual <strong>of</strong> Second to Die<br />
<strong>Resnick</strong> <strong>Associates</strong>
CAUTION<br />
• Variable - Warning<br />
• Universal - Warning<br />
• Variable Universal – Warning<br />
• No Lapse Universal - Potential Warning<br />
<strong>Resnick</strong> <strong>Associates</strong>
Life Insurance is an ASSET<br />
• The second largest ASSET for most<br />
business owners is the face value <strong>of</strong> their<br />
life insurance<br />
• Most business owners do not have a<br />
thorough understanding <strong>of</strong> how their<br />
insurance contracts function - this <strong>of</strong>ten<br />
leads to significant problems for their<br />
Estate and Succession Plans<br />
<strong>Resnick</strong> <strong>Associates</strong>
The Objective <strong>of</strong> An<br />
Insurance Premium Payment<br />
TRANSFER A RISK - BUT IS THIS<br />
GUARANTEED TO HAPPEN<br />
IT DEPENDS…..<br />
<strong>Resnick</strong> <strong>Associates</strong>
Variable Life Insurance<br />
The following items are NOT guaranteed<br />
1. Premium<br />
2. Cash Value<br />
3. Death Benefit<br />
<strong>Resnick</strong> <strong>Associates</strong>
Universal Life Insurance<br />
The following items are NOT guaranteed<br />
1. Premium<br />
2. Cash Value<br />
3. Death Benefit<br />
<strong>Resnick</strong> <strong>Associates</strong>
Variable Universal Life<br />
Insurance<br />
The following items are NOT guaranteed<br />
1. Premium<br />
2. Cash Value<br />
3. Death Benefit<br />
<strong>Resnick</strong> <strong>Associates</strong>
Company Safety is Critical<br />
• Verify Ratings by all 5 Major Independent<br />
Rating Services<br />
• Comdex Score<br />
• Any recent downgrades <strong>of</strong> company<br />
<strong>Resnick</strong> <strong>Associates</strong>
Questions that need<br />
Correct Answers<br />
• Was your life insurance acquisition based<br />
upon strict due diligence<br />
• Do you know the Comdex Score <strong>of</strong> your<br />
insurance company(s)....have you ever<br />
heard <strong>of</strong> a Comdex Score<br />
• Are you certain, with all the changes in the<br />
market place, that you have policies with<br />
the lowest net cost<br />
<strong>Resnick</strong> <strong>Associates</strong>
“I thought Life Insurance was<br />
Tax Free”<br />
• Income and Estate Tax Situations<br />
• Ownership <strong>of</strong> Policy must be set up correctly<br />
• Pension Protection Act <strong>of</strong> 2006!!<br />
• Three Party Contracts<br />
<strong>Resnick</strong> <strong>Associates</strong>
“Hidden” Value in Existing<br />
Insurance Portfolio<br />
• Unneeded Life Insurance may prove to be a<br />
financial windfall<br />
• Certain policies (depending on age, health,<br />
and policy status) are very attractive to<br />
outside buyers<br />
• Payout received, may be significantly<br />
higher than cashing in the policy<br />
<strong>Resnick</strong> <strong>Associates</strong>
Valuation<br />
Important for Lifetime Gifts<br />
and Testamentary Transfers<br />
Fair Market Value<br />
What a Willing Buyer Would<br />
Pay a Willing Seller, Neither Being<br />
under a Compulsion to Buy or Sell<br />
and Both Knowing All Relevant Factors<br />
<strong>Resnick</strong> <strong>Associates</strong>
Valuation<br />
IRS Revenue Rulings<br />
Key Ruling - 59-60<br />
Earnings<br />
Capacity<br />
Book Value<br />
Dividend<br />
Capacity<br />
Marketability<br />
Risk Closely<br />
Held<br />
Market Factor<br />
Publicly Held<br />
Minority<br />
Discounts<br />
Control<br />
Premium<br />
<strong>Resnick</strong> <strong>Associates</strong>
Business or Surviving Shareholder<br />
Required Financial Obligation<br />
$ 5 MILLION BUYOUT AMOUNT<br />
<strong>Resnick</strong> <strong>Associates</strong>
What are the Choices to<br />
Fund a Buyout<br />
• Sinking Fund<br />
• Borrowing<br />
• Installment Method<br />
• Life Insurance
What are the Costs for each<br />
method<br />
• SINKING FUND - $5,000,000<br />
• BORROWING - More than $5,000,000<br />
• INSTALLMENTS - More than $5,000,000<br />
• LIFE INSURANCE - Significantly Less Than<br />
$5,000,000<br />
<strong>Resnick</strong> <strong>Associates</strong>
Advantages <strong>of</strong> a Formal<br />
Buy-Sell Agreement<br />
• Surviving Owner maintains Continuity <strong>of</strong><br />
Ownership and Management<br />
• Decedent’s Estate / Family Converts<br />
Unmarketable, Non-Liquid Business<br />
Interest to Cash<br />
• Provide Fair and Reasonable Price<br />
• Possibly Peg the Value for Federal Estate<br />
Tax Purposes<br />
<strong>Resnick</strong> <strong>Associates</strong>
Types <strong>of</strong> Buy-Sell Agreements<br />
• Stock Redemption<br />
• Cross Purchase<br />
• Wait and See<br />
<strong>Resnick</strong> <strong>Associates</strong>
Key Components<br />
Buy-Sell Agreement<br />
• Language that addresses all contingencies<br />
• Valuation<br />
• Funding<br />
<strong>Resnick</strong> <strong>Associates</strong>
Stock Redemption Plan<br />
• “A” and “B” Form Corporation & Each<br />
Contributes $500,000<br />
• 10 Years Later Corporation is Worth $10,000,000<br />
• “A” and “B” Enter Into a Stock Redemption<br />
Agreement<br />
• Corporation Becomes Owner and Beneficiary <strong>of</strong><br />
$5,000,000 Policy on Both “A” and “B”<br />
<strong>Resnick</strong> <strong>Associates</strong>
Stock Redemption Plan<br />
“A” Dies:<br />
• $5,000,000 Death Benefit is Paid to the<br />
Corporation<br />
• Corporation pays $5,000,000 to “A”s Estate<br />
• “A”s Estate Redeems Stock Back to<br />
Corporation<br />
• “B”s Stock is Now Worth $10,000,000<br />
(Same # Shares, Twice the Value)<br />
<strong>Resnick</strong> <strong>Associates</strong>
Stock Redemption Plan<br />
• “B” Decides to Retire and Sell Corporation<br />
for $10,000,000<br />
• “B” Must Pay Capital Gains taxes on<br />
$9,500,000 ($10,000,000 Minus Original<br />
Cost Basis <strong>of</strong> $500,000)<br />
<strong>Resnick</strong> <strong>Associates</strong>
Cross Purchase Plan<br />
• “A” and “B” Form Corporation & Each<br />
Contributes $500,000<br />
• 10 Years Later Corporation is Worth<br />
$10,000,000<br />
• “A” and “B” Enter Into Cross Purchase Plan<br />
<strong>Resnick</strong> <strong>Associates</strong>
Cross Purchase Plan<br />
• “A” is Owner and Beneficiary <strong>of</strong><br />
$5,000,000 Policy on “B”<br />
• “B” is Owner and Beneficiary <strong>of</strong><br />
$5,000,000 Policy on “A”<br />
<strong>Resnick</strong> <strong>Associates</strong>
Cross Purchase Plan<br />
“A” Dies:<br />
• “B” is Paid $5,000,000 from Policy on “A”s<br />
Life<br />
• “B” Pays “A”s Estate $5,000,000 for “A”s<br />
Stock<br />
• “B” now Owns $10,000,000 <strong>of</strong> Company Stock<br />
<strong>Resnick</strong> <strong>Associates</strong>
Cross Purchase Plan<br />
• “B” Decides to Retire and Sell Corporation<br />
for $10,000,000<br />
• Since “B” bought “A”s Stock for<br />
$5,000,000 and had $500,000 Original<br />
Basis…<br />
• …”B” Pays Capital Gains Taxes on<br />
$4,500,000<br />
• RESULT…. Tax Savings on $5,000,000<br />
<strong>Resnick</strong> <strong>Associates</strong>
Summary……<br />
• Buy/Sell Agreements are more than a<br />
Business Planning Strategy<br />
• If drafted and funded properly, they protect<br />
everyone – owners and their families and<br />
employees and their families<br />
• Be cognizant <strong>of</strong> design to avoid possible<br />
unnecessary taxes in the future<br />
<strong>Resnick</strong> <strong>Associates</strong>
SPECIAL CASE STUDY<br />
ABC CONSTRUCTION, INC.<br />
SUCCESSION PLAN<br />
<strong>Resnick</strong> <strong>Associates</strong>
Case Facts<br />
• Louie, Age 63 and Louise Young, Age 61<br />
(Parents – Both Active)<br />
• Three Children:<br />
Joe, Age 31 and Unmarried<br />
Moe, Age 28 and Married to Nora<br />
Helena, Age 25 and Married to Ken<br />
• Louie, Louise, Joe, Moe each own 25%<br />
• Fair Market Value <strong>of</strong> ABC, Inc. is $7,000,000<br />
• Louie and Louise Estate Valued at $10,000,000<br />
<strong>Resnick</strong> <strong>Associates</strong>
Current Plan<br />
• Louie and Louise have Simple Wills<br />
• At Second Death, Estate is Distributed<br />
Equally among the Three Children<br />
• There is no Buy-Sell Agreement<br />
• Moe and Helena have Simple Wills<br />
• Joe does not have a Will<br />
<strong>Resnick</strong> <strong>Associates</strong>
Goals<br />
• Distribute the Estate Fairly Upon the Last to<br />
Die <strong>of</strong> Louie and Louise<br />
• Assure that ABC, Inc. is Run by the Two<br />
Sons Who are Active in the Business<br />
<strong>Resnick</strong> <strong>Associates</strong>
Possible Results <strong>of</strong> Current<br />
Plan after Death<br />
Joe<br />
42 Shares<br />
$500,000<br />
Moe<br />
42 Shares<br />
$500,000<br />
Louie<br />
25 Shares<br />
Louise<br />
25 Shares<br />
<strong>Resnick</strong> <strong>Associates</strong><br />
Helena<br />
16 Shares<br />
$500,000
Possible Results <strong>of</strong> Current<br />
Plan<br />
At Moe’s Subsequent Death<br />
Joe<br />
42 Shares<br />
Moe<br />
Nora<br />
42 Shares<br />
Helena<br />
16 Shares<br />
<strong>Resnick</strong> <strong>Associates</strong>
Possible Results <strong>of</strong> Current<br />
Plan at Moe’s Subsequent<br />
Death<br />
• Nora and Helena May Sell ABC, Inc. to<br />
Strangers/Competitors<br />
• Joe May Lose Control <strong>of</strong> ABC, Inc.<br />
• Who is Running ABC, Inc.<br />
<strong>Resnick</strong> <strong>Associates</strong>
Solutions/Step-One<br />
Cross Purchase Agreement<br />
Assets Transfer<br />
to Survivor at<br />
first death<br />
Louie<br />
Louise<br />
Brothers<br />
Purchase<br />
Shares at<br />
Second Death<br />
Joe<br />
<strong>Resnick</strong> <strong>Associates</strong><br />
Moe<br />
Cross<br />
Purchase
Solution/Step Two<br />
Contingent Beneficiary<br />
• After Sons Buy Shares, Estate Has<br />
$7,000,000 in Newly Created Liquid Assets<br />
• Parents now Have the Ability to Increase<br />
Cash Distribution to Helena<br />
<strong>Resnick</strong> <strong>Associates</strong>
Possible Results/New Plan<br />
Cross Purchase Agreement<br />
Louie<br />
Louise<br />
Purchased<br />
Shares at<br />
Second Death<br />
Cross<br />
Purchase<br />
Joe<br />
<strong>Resnick</strong> <strong>Associates</strong><br />
Moe
Possible Solution<br />
Totals<br />
Joe<br />
$2,250,000<br />
50 Shares<br />
Moe<br />
$2,250,000<br />
50 Shares<br />
Helena<br />
<strong>Resnick</strong> <strong>Associates</strong><br />
$4,000,000
CONTACT INFORMATION<br />
Leon B. <strong>Resnick</strong><br />
<strong>Resnick</strong> <strong>Associates</strong><br />
14640 Grant Street<br />
Overland Park, KS 66221<br />
(913) 681-5454 <strong>of</strong>fice / (816) 550-6268 cell<br />
Terrance K. <strong>Resnick</strong><br />
<strong>Resnick</strong> <strong>Associates</strong><br />
2073 Doral Drive<br />
Harrisburg, PA 17112<br />
(717) 652-2929 <strong>of</strong>fice / (717) 991-3911 cell<br />
<strong>Resnick</strong> <strong>Associates</strong>
Today and Tomorrow<br />
• Complete and turn in questionnaire for<br />
individualized additional information<br />
• 30 Minute Complimentary Consultations<br />
tonight and tomorrow (Sign-in Sheet)<br />
• 30 Minute Complimentary Phone<br />
Consultations for anyone unable to meet in<br />
person<br />
<strong>Resnick</strong> <strong>Associates</strong>
Company Succession Planning<br />
“Guarding Business and Non-Business Assets<br />
from the Ravages <strong>of</strong> the IRS”<br />
<strong>Master</strong> <strong>Builders</strong> <strong>of</strong> <strong>Iowa</strong><br />
Des Moines, <strong>Iowa</strong><br />
February 21, 2012<br />
Name ______________________________________________<br />
Company Name __________________________________________<br />
Business Address ______________________________<br />
Phone Number ____________<br />
City/State ___________________________________________<br />
Family Business Yes _____ No _____<br />
Owner Yes _____ No _____<br />
I Would Like to Discuss Information On The Following:<br />
___ Transferring Family Business To Next Generation<br />
___ Estate Equalization for Active and Non-Active Children<br />
___ Reducing Federal Estate Taxes<br />
___ Review <strong>of</strong> Current Buy-Sell Agreement or Creating New Buy-Sell Agreement<br />
___ Retention <strong>of</strong> Key Executives/Employees in Company<br />
___ Review <strong>of</strong> Personal/Business Life Insurance<br />
___ How to Pr<strong>of</strong>it from Existing Life Insurance Policies that are no Longer Needed<br />
___ Controlling Employee Benefits Expenditures<br />
Other Associations or Buying Groups that could benefit from this<br />
seminar:<br />
CONTACT INFORMATION<br />
Leon <strong>Resnick</strong><br />
Terrance <strong>Resnick</strong><br />
<strong>Resnick</strong> <strong>Associates</strong><br />
<strong>Resnick</strong> <strong>Associates</strong><br />
14640 Grant Street 2073 Doral Drive<br />
Overland Park, KS 66221 Harrisburg, PA 17112<br />
(913) 681-5454 (717) 652-2929<br />
<strong>Resnick</strong>AssocLBR@aol.com<br />
<strong>Resnick</strong>AssocTKR@aol.com