CASE STUDY

Sharing Entrepreneurial Wealth Across Generations

Successful startup entrepreneurs seek to fortify their wealth plan ahead of a liquidity event.

Background

Husband and wife are successful entrepreneurs who founded a technology business with just a few employees. They have three small children and have an estate plan currently in place. Capitalizing on the growth of enterprise computing, and later, cloud services, the company flourished. Over the next five years, the clients began to think about a sale, most likely to a private equity firm.

Client Objective

An estate plan structured to maximize tax efficiency and seek growth of assets that would be available across future generations. The clients also wished to evaluate entity structures that could potentially help protect their assets from outside interests in the event of potential lawsuits and creditors.

NB Private Wealth Solution

Using a holistic planning approach, the clients’ Advisor partnered with our Advice, Planning and Fiduciary Services teams to review the existing estate planning documents to confirm that they were aligned with the client’s objectives. During the review, several gaps were identified which revealed opportunities to realign the family’s estate plan to execute their goals more efficiently1. Specifically, our team focused on the transfer of non-controlling ownership interests of the company over time to trusts that would benefit family members, capitalizing on annual gift-tax exclusions and lifetime gift and generation-skipping transfer tax exemptions.

Other Insights

1 Neuberger Berman, as well as its employees, does not provide tax or legal advice. You should consult your accountant, tax adviser and/or attorney for advice concerning your particular circumstances.

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Case studies are for illustrative purposes only. It is not known whether the referenced clients approve or disapprove of any investment advisory or wealth planning products and services. Any estate planning goals or objectives are client established and there is no guarantee that any goals or objectives will be achieved or that an investment strategy will be successful.

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