In this stock award matrix, we help an executive better grasp how he might transfer a portion of the equity in his company to a ‘Legacy Trust’, which could protect his family’s assets from creditors/lawsuits, benefit his children and save his family considerable estate tax over time.

Over 30 years, the trust assets could grow to over $60M. And the entire value of the trust could pass to his kids free of estate tax. At a 40% estate tax rate, that’s a savings of ~$24M.

Since the value of his Biotech company (and his equity stake) fluctuates considerably, we modeled several scenarios assuming different market caps.

This modeling helped him and his family better weigh the tradeoffs around a range of potential outcomes.

Disclaimer: For information purposes only and should not be interpreted as legal, tax or financial advice. Always consult your CPA/tax advisor/attorney (or reach out to us;) to discuss your specific situation.