Profession: Tax Advisor with his own company
Masaru’s Client: Mr. Takahashi is the CEO of a major manufacturer of electronic components. Although the company is publicly traded, he maintains a controlling interest with 90% of his wealth in corporate stock and real estate. Mr. Takahashi is in his late 60s and in good health. He has a net worth of $400,000,000.
Mr. Takahashi wants to pass the company onto his heirs. He is also looking for investment capital to start a wholly owned product distribution company in the United States.
Masaru wants to create liquidity for Mr. Takahashi so his heirs will not be forced to sell their company stock to pay inheritance taxes. He is also looking for a financial structure for Mr. Takahashi to raise the capital for business expansion without selling stock or diluting his controlling interest in the company.
Introduced to The Pacific Bridge Companies (TPBC) by a Tax Attorney who used their services.
Financial Planning Focus for Mr. Takahashi:
- Income Protection and Wealth Preservation
- Wealth Creation and Accumulation
- Wealth Transfer to Heirs and Future Generations
Financial Alternatives Coordinated by TPBC:
TPBC and Masaru proposed that Mr. Takahashi take out a loan from a private bank, using his stock as collateral. Most of the funds from the loan would be used to purchase life insurance to cover the inheritance taxes. The balance of the funds – along with additional funds raised from a second loan with the life insurance policy as collateral – would provide Mr. Takahashi with the necessary investment capital for business expansion.
The client approved the plan. Masaru, along with TPBC and Mr. Takahashi’s attorney implemented the plan, negotiating with the insurance carrier and the private bank to ensure the most favorable terms for the life insurance policy and the two bank loans.
It was agreed that Masaru and TPBC would meet with Mr. Takahashi on an annual basis to review the financial plan and develop a more comprehensive estate plan designed to address the client’s long-term goals for his heirs.