Howard S. Fisher, Esq. & Alexander J. Fisher, Esq. 1 The Case - - PowerPoint PPT Presentation

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Howard S. Fisher, Esq. & Alexander J. Fisher, Esq. 1 The Case - - PowerPoint PPT Presentation

Sep 17, 2022 103 likes •229 views

Howard S. Fisher, Esq. & Alexander J. Fisher, Esq. 1 The Case Study # 3 Closely held business couple in their 30s of Russian origin medical technology "S" corporation grossing $30,000,000 netting $10,000,000; potentially worth

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Howard S. Fisher, Esq. & Alexander J. Fisher, Esq.

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The Case Study # 3

Closely held business couple in their 30s

  • f Russian origin medical technology "S"

corporation grossing $30,000,000 netting $10,000,000; potentially worth $100,000,000; residence worth $8,000,000; liquid assets of $10,000,000; building on which business is located $5.0M; retirement plan $1.0M.

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How To Look At The Facts

Closely held business couple in their 30s of Russian origin medical technology

  • "S" corporation grossing $30,000,000

netting $10,000,000; potentially worth $100,000,000; residence worth $8,000,000; liquid assets of $10,000,000; building on which business is located $5.0M; retirement plan $1.0M.

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Who Are The Potential Creditors?

 Users of the technology of S-Corp  S-Corp’s vendors  Investors in S-Corp  Employees of S-Corp  “Guests at the properties”

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Who Are You Planning For?

 The Russian couple?  The Business?

 Business itself – its assets  Officer/directors  Shareholders

 Conflicts

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Bill’s World of Strategies

  • Product-Component Focused
  • Checklist Focused
  • Concept Focused
  • Potential-Creditor Focused
  • Asset Focused
  • Client-Risk-Management Focused
  • Integrated With Estate Plan

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Personal Issues

  • Couple in their 30s
  • Married - Community Property?
  • Premarital Agreement?
  • Post-Marital Agreement
  • Russian origin
  • Immigration / tax residence status?
  • Willingness to move or expatriate

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Estate Planning Issues

 Stability of the marriage  Family – kids?  Heirs in the US? Non-US  S-Corporation

 Qualified Sub-S Trust  Grantor trust  Electing Small Business Trust  Convert to LLC or S-Corp.

 Long Term Planning Opportunities (next slide)

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Long Term Planning Opportunities

Integrate With Standard Business &

Estate Planning

Dynasty trusts FLP / FL-LLC Sale of assets to …

 Annuity  Self-cancelling Installment Note

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Business Planning Issues

 Non-AP Problems

– Be sure who owns IP

  • S-Corp status

 AP Planning for the Business  Technology – the IP = Spin-off To FACT  Personal property?  Real property  Stream of Income/cash flow  Value of the shares

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What You Might Consider

Individuals

Post-nuptial Domestic APT vs. Foreign APT Sale

To Irrevocable Dynasty Trust

Pension – Don’t Do Anything Private Retirement Plan - - - with

Foreign sub-trust

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