Preparing heirs to lead with confidence

A high-net-worth family was looking to integrate their $18 million family-owned business, $9 million brokerage account, real estate holdings, and retirement assets into a tax-efficient estate plan. They wanted to carry their values forward across generations by instilling confidence, financial discipline, and astute decision-making skills in their heirs. With multiple assets, varying risk profiles, and future business success to consider, they needed a strategy that addressed complexity while promoting clarity and accountability for the next generation.

The Challenge: Aging Parents Wanting to Secure Their Children’s Future

The parents, in their 50s, wanted to preserve and transfer their wealth while reducing tax burdens. More importantly, they wanted their three children in their early 20s to be prepared to manage their financial future responsibly.

For the parents, paving out a legacy for their children included equipping them with the confidence, knowledge, and judgment needed to make smart financial choices. They understood that inheritance without preparation could lead to overwhelm or mismanagement.

The family sought guidance on how to:

• Structure their estate plan to reduce taxes while maintaining control
• Provide financial security for their children without creating dependency
• Educate their heirs on making sound investment and business decisions

Our Approach: A Roadmap for Financial Success

Elliott Davis designed a tailored plan to reduce the family’s tax liability and position the next generation for success. Working closely with the family, our team helped translate complex financial decisions into a clear, multi-phase plan that prioritized both technical strategies and practical financial education to create continuity across generations.

Strategies at a glance:

• Created and funded a new entity to facilitate wealth transfer and provide a structured environment for financial education while reducing estate taxes
• Implemented gift-splitting strategies to transfer $38,000 per child annually, tax-free
• Established and strategically funded a new trust to reduce estate tax burdens, allow for asset appreciation, and maintain cash flow
• Equipped the next generation for financial responsibility through education in wealth management tools, investment strategies, and business operations

Together, these steps created a structure that balanced technical planning with the human side of wealth: trust, understanding, and responsibility.

The Results: Peace of Mind Through Preparation

What began as a conversation about tax strategy became a larger vision for legacy and leadership. By aligning wealth transfer with education, the family achieved:

• A strategic, tax-efficient wealth transfer plan
• A $2 million reduction in estate tax liability before asset appreciation
• Preservation of assets through trust structures and gifting strategies
• A roadmap for young heirs to take on more financial responsibility
• Flexibility to adjust the estate plan over time

This approach preserved wealth and empowered the next generation to make informed financial and business decisions, positioning the family’s business and legacy to thrive for years to come.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.