Family squabbles mitigated, lessened in business transition*

Two brothers commercial real estate business 

Two brothers run successful $40 Million commercial real estate development company. 

  • $40 Million Company 
  • 2 Shareholders, brothers 64 and 74 
  • Company growing quickly with new projects being completed 


The families do not get along. Immediate and equitable division of assets is desired. There is a fear that one brother will pass soon and leave control of the business to family members who have no experience and sharp disagreements about the future direction of the business. 


To be addressed by Planning Network Partners include: 

  • Create a funded Buy-Sell Agreement 
  • Move to divide assets ASAP through mediated conversations, reducing disruption to the continued growth of the company 


After discovery meetings with the clients, Planning Network Partners develops a strategy enabling immediate liquidity upon the passing of the first brother with funded Buy-Sell Agreement. This enables the families to go their separate ways peacefully. The brothers agree to meet monthly for two years to divide current assets. Cash flow remains stable to enable company growth with the purchase of Life Insurance through Premium Financing. 

The Plan 

Communicate with all parties and discover the amount that will enable the Buy-Sell Agreement execution. Schedule monthly meetings to divide current assets. Build LLC structure to hold assets and enable interest expense deduction. 

  • Liquidate current Permanent Life Insurance held for 15 years and use cash values for collateral. 
  • Build LLC structure and move assets to structure to facilitate interest expense deduction. 
  • Fund Buy-Sell Agreement with Financed Life Insurance policy.


  • Financed Life Insurance provided $10 Million of immediate liquidity to facilitate Buy-Sell agreement. 
  • Remaining balance of company assets to be distributed via note.
  • The interest expense paid for financed policy deductible for current tax year. 
  • Business growth not disrupted via large Life Insurance premium paid out of pocket. 
  • Most importantly, relationship between the brothers and the family has improved. 

The many moving parts of your estate – business, heirs, real estate, philanthropy, investments – need to be orchestrated in concert to maximize your legacy and reduce your loss to estate taxes. This requires significant inter-disciplinary expertise to realize the benefits and avoid the pitfalls. Planning Network Partners is dedicated to examining this and other opportunities as part of a larger picture of your whole financial health. 

Contact Us today for expert assistance.

*Source: (2) Capital Max Insurance