Vogel Consulting — Client Success Story

Vogel Consulting was asked to review an extended family's estate plan focusing on a matriarch, age 79, with a pre-existing medical condition making her uninsurable. This client had in place an existing estate plan, including a private foundation, CRUT and numerous trusts, which had been drafted by her attorneys. Even after implementing the proposed plan, the family still faced $60 million in estimated estate taxes. The family did not think Vogel Consulting could do anything, but had heard that we often came up with solutions that were "outside the box" of traditional thinking.

Vogel Consulting gladly met with the family and could immediately see that the matriarch was anything but ill. In fact, this woman was active, smart, articulate and interested in finding solutions. She was not adverse to risk but wanted to understand her options and the level of risk each option contained. Vogel offered a multi-phased plan of action that was to be implemented over a 6-8 year period. First, with Vogel's help, the client took control of her medical tests and records information. Second the client would engage in a wellness training program, with the specific objective of improving her insurability rating and adjusting her life style, diet and exercise routine. A trainer was retained for one year. Third, all of the estate documents and existing family entities were reviewed for possible revision or incorporation into a new master estate planning program. The program included the articulation of family objectives and time lines, the incorporation of the private family foundation, new estate techniques involving limited family partnerships, several grantor trusts, the sale of private assets to trusts, and the creation of notes to the grantor.

Lastly, a management corporation was created within the plan that produced an income stream that could be utilized to pay for any insurance premiums on the life of the matriarch. The client was able to pass the insurability test and multiple levels of life insurance were purchased. Thus far, the client has been able to reduce the estimated estate taxes due to around $5 million and will transfer $50 million to children and charity nearly tax free. The family continues to retain Vogel and uses our integration-led wealth management™ approach to family office services.