Ten years ago John and Sue Wharton, ages 75 and 73 respectively, sold their closely-held distribution business for $32 million. Their son, Ed, continued to work in the business for two years after the sale, then left to start a real estate development company. John and Sue’s daughter, Kathy, owned a small portion of the business, but never worked for the company.
As long term advisors to the Whartons, we now work with three generations of the family. A few examples of how our expertise has helped include:
- To accomplish efficient wealth transfer and further the family’s charitable legacy, we worked to create a charitable lead trust that enabled John and Sue to reduce their taxable estate, fund their charitable giving and ultimately pass assets to their grandchildren with the benefit of trust protection.
- To replace the income the family formerly enjoyed from the business, we devised an investment strategy that diversified their portfolio (half the acquisition was in publicly traded stock), provided a stable, sustainable and secure source of cash flow for John and Sue, and minimized income taxes.
- To assist their children and work towards an equitable division of their estate, we formed several trusts that protected Kathy’s assets and inheritance when she divorced and ultimately remarried. The trusts also provide a source of income for Kathy and her two children since she didn’t work outside the home.
- We introduced Ed to his current partner in the real estate development company, someone with a complementary skill set which has enabled the company to expand into property management as well as development.
The Whartons especially value the long-term continuity of their relationship with Trust Company of the South, and the benefits of working with a team of advisors with complementary talents and expertise. Trust Company has proactively addressed planning strategies and provided valuable counsel well beyond managing their investment portfolio.