We helped the company determine the roles of each family member in the organization and how specific roles would be transferred to the second generation.

The client is the owner of a successful restaurant chain and also owns large tracks of valuable real estate. The business is very much a family business. The husband and wife act as “CEO & CFO” of the business, and they have two eager children starting in the business hoping to take over responsibilities.

Because of illiquidity in the business and real estate, estate taxes were one of the first issues TrustCore faced in creating a financial plan. What happens if both husband and wife pass unexpectedly? How would the family pay the estate tax? How would the business continue operationally?

TrustCore spent a lot of time listening to the owners talk about their passion for their children to eventually work and take over as the leaders in the company. We helped the company determine the roles of each family member in the organization and how specific roles would be transferred to the second generation.

One of the issues the owners faced was how to be fair to a child that decided not to enter the family business. TrustCore worked with the estate attorney on all of their estate documents. These were updated to ensure that children inside and outside the business would benefit from the success of the business in a fair way.

TrustCore helped the company obtain liquidity through life insurance in the event that the owners were to have an untimely death. Working with the estate attorney, we were able to create different trusts that would allow the children to pay estate taxes and have funds to operate the business.

In the past, the company was not able to maintain key employees. TrustCore is working with the client now to add benefits to the key people of the company so they can keep the talent at the company instead of losing them to rival companies.

The company has historically had very low retirement plan participation, which prohibits the owners from making contributions. TrustCore is working on a plan that will give the employees more incentive to participate in the plan and allow the owners to maximize their contributions and make additional contributions for key employees in the company.

Through the relationship that has been built, TrustCore has guided the client through decisions that will have a positive short-term and long-term impact on their business and family.