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| Our client anticipated receiving stock valued at approximately $1 billion upon the sale of his company. Wanting to replace the income he was accustomed to receiving as CEO, our client was also interested in preserving his newly acquired wealth for future generations. |
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| Expert Advisors In collaboration with our client's legal advisors, our Private Wealth Advisory team, joined by our Trust and Estate Specialists, developed a financial strategy. |
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| Exclusive Access To replace his compensation income, we recommended tax-advantaged vehicles such as a charitable remainder trust, which allowed him to receive a payment stream and diversify his concentrated stock position while postponing capital gains taxes until the gains were distributed. Our client also used select tax provisions that allowed him to defer taxes on the sale of his publicly traded stock by investing the proceeds in his other start-up ventures. To ensure the tax-efficient transfer of his wealth to future generations and his favorite charities, his attorney employed grantor-retained annuity trusts, a testamentary charitable lead trust and a dynasty trust for the benefit of our client's grandchildren. |
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| Custom Services Through a disciplined process, we helped our client define his goal of preserving financial independence and implementing thoughtful estate planning techniques to reinforce his family's core values. We worked with his attorney to implement the trust structures that were best suited to protect the family wealth and to advance his philanthropic endeavors. |
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| Through the various trusts, our client was able to receive a steady payment stream, reduce his estate taxes, transfer more of his wealth to his heirs and realize his philanthropic vision. We helped our client develop a family mission statement that served to guide his professional advisors in creating these wealth transfer and charitable giving strategies, which will serve to guide his family's philanthropy for generations to come. |
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| To learn more about our Estate Planning and Trust Services capabilities, contact a specialist at pbig_estateplanningandtrustservices@ml.com. |
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| This case study is intended to illustrate products and services available at Merrill Lynch. It may not represent the experience of every client, nor does it indicate future performance. Investment results may vary. The investment strategies presented are not appropriate for every investor. |
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