Business Succession
 
 
Tom Cooper thought he had planned adequately for his family’s future until he saw things from a different perspective.

Having worked hard all his life, Tom had built his family business to the point where it would be his legacy. And the success it had brought him over the years enabled him to make additional investments, the fruits of which he also planned to eventually leave for his loved ones. He had done some estate planning in the past, establishing a basic trust, and had discussed the ultimate disposition of the family business with his three sons. But, as he got closer to retirement, he knew it was time to get all the details nailed down.

“It was something I kept putting off,” Tom said of his decision to review his estate and other long-term financial plans. “But when my Baird Financial Advisor sat down with me and explained what could happen, I was very glad I listened.”

A long-time Baird client, Tom had worked with other financial firms in the past. But he particularly valued Baird’s understanding of his unique situation and goals as a business owner. On his Financial Advisor’s recommendation, he met with a Baird senior estate planner, who has more than 12 years of experience in complex business succession planning and estate tax matters. Tom explained what his objectives were: to transition ownership of the family business to one of his sons and to make sure the rest of his estate – including a condo, a cottage, several rental properties and some development property – was distributed evenly among his wife, Megan, and his other sons. Looking at the strategies Tom already had in place, Baird quickly discovered that more needed to be done to help ensure those objectives could be met.

“It was a real eye opener!” Tom said. “Just looking at the taxes with the way my trust was set up, I was amazed at how much could end up going to the government.”

By recommending the re-titling of Tom’s assets, and helping him establish both a marital trust and a credit shelter trust, Baird was able to help Tom and his wife minimize, if not completely eliminate, their potential estate tax liability. Baird was also able to provide direction for a business succession plan, through which the son who has been involved in the family business can buy out the interests of his brothers. Tom even asked Baird to work with his legal and tax professionals as a trusted advisor to review and help ensure all of his new documents supported his plans.

Now, when Tom thinks about the future, his comfort level is high and so is his family’s.

“It was important to me that Megan be involved and informed,” Tom said. “She came with me to the meeting and she was impressed by the people at Baird. She could see that they knew what they were talking about and also that they understood us and cared about what we were trying to do. It’s good to know she has that kind of confidence in them.” 
*Names in this text have been changed to protect the clients’ privacy.
 
Baird does not offer legal or tax advice. This client story may not be representative of the experience of other clients, and is no guarantee of future performance or success.
 
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