The Background

A young professional has been running a successful business for over 15 years. Both he and his wife are high-income earners and understand that this stage of their lives is focused on capital accumulation. He wants to organize his financial life to balance all of his priorities, from securing his children’s education and to structuring his estate in a tax-efficient manner. He also plans to sell his business to engage in new interests – eventually purchasing a cottage and working from home.

 

The Issue

The young professional and his partner have properties in Canada and the U.S., a multifaceted business, and a number of other assets that make their cash flow and overall financial picture complicated. They don’t have time to efficiently manage the financial needs his family has now, or to plan thoroughly for all that they want to accomplish in the next 10-20 years.

 

The Solution
 

TIER 1
Needs, Wants and Aspirations

After clarifying his individual values and priorities, specific goals are defined, such as cross-border tax structuring for their properties, selling of the business, purchasing a cottage, writing wills, semi-retirement within 15 years and supporting his children’s education.

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TIER 2
Risk Analysis

Our risk analysis process allows us to create a unique portfolio that is clearly segmented into needs, wants and aspirations, with each category remaining consistent with their objectives.

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TIER 3
Family Wealth Continuity

His family and a number of other specialists are included in discussions. He is presented with a comprehensive cross-border, tax, estate and financial plan to help organize the family’s affairs, including his children’s education. Our mid-market investment banking team is working in the interim to find a buyer for his business, which will help us limit capital gains tax upon the sale of the business.

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TIER 4
Strong Decision-Making

We review both his and his wife’s ability (financially) and willingness (emotionally) to take risk. We also help him to visualize how his short-term needs, mid-term wants, and long term aspirations will balance within their portfolio over time.

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TIER 5
Protection from Losses

Working with our business succession planning specialists, multiple solutions are uncovered to lessen the impact of taxes and improve the family’s cash flow. Knowing that the execution of the plan considers his complete financial picture, he can feel secure that his business will be profitable even after he has left it, freeing him to concentrate on new interests from his home or at the cottage.