Home Site Map Contacts
Click to see samples of seven planning tools that can achieve more than half of the 50 goals reflected by "Your Purpose" below:
Charitable Remainder TrustComprehensive PlanEmployee Stock Ownership ProgramGrantor Deemed Owner TrustQualified Plan StrategySuper CLATThe Optimized Portfolio System
 
Employee Stock Ownership Program


1
 Smith Enterprises establishes an ESOP, a qualified retirement plan. It will make tax deductible contributions to this plan annually based on payroll.
2
 Thomas sells $3,750,000 of his stock to the ESOP. The company could arrange to finance this transaction with a lender. Alternatively, as in this illustration, Thomas finances the transaction personally by accepting a note in exchange for the stock. The note will bear interest of 8.5% and be amortized over 7 years.
3
 Richard elects to reduce his compensation to $495,000. This will help the company finance the other elements of the overall arrangement. Despite this reduction, his total income from all sources will increase.
4
 Smith Enterprises contributes $200,000 annually for 5 years to an incentive compensation plan.
5
 Thomas receives future distributions from the incentive compensation plan. Thomas will receive 5 annual distributions from this plan beginning 6 years from the inception of the plan. We estimate the total gross compensation paid to Thomas over this time to be $1,772,000.

There is no guarantee that cash values will be available to offset all or even part of the Repurchase Liability.

U.S. Treasury Circular 230 requires that this firm advise you that any tax advice provided was not intended or written to be used, and cannot be used by you, for the purpose of avoiding penalties that the IRS could impose upon you.