WCF Advisors Blog
Recent Gift Tax Decisions: Favorable Impacts on Pass-Through Entities
Family limited partnerships (FLP) and limited liability companies (LLC) are routinely used for wealth preservation through asset protection and estate planning. FLPs can be an especially attractive planning option in that substantial valuation discounts such as discounts for lack of marketability and discounts for lack of control are common. This reduces the gross value of the estate for tax purposes, supporting wealth preservation and transfer tax savings.
The Internal Revenue Service continues...
Bank and Holding Company Stock Buybacks: Being Vigilant About Value
We recently were the bearers of bad news to a bank client’s board of directors. We had to tell them that their stock, determined on a minority, nonmarketable basis, was not worth 160% of book value— the price at which they had been redeeming stock. “How,” they asked, “could our value decrease when we are still profitable and our book value has gone up?”
This is just one example of a bank or holding company using pre- recession multiples to buy back stock....
Bank Buy-Sell Agreements: What is Your Plan?
Poorly crafted, ill-conceived, outdated buy-sell agreements—or worse, no agreement at all or just “what we’ve always done”— offer endless examples of board members who’ve set themselves up.
Many banks and boards endlessly twist in the wind of litigation, as if a tornado has taken its toll, after a “triggering” event activates a poorly crafted, ill-conceived, or outdated buy-sell agreement.
Crafting a good buy-sell agreement is as much about...
Are Your Clients’ Buy-Sell Agreements Ticking Time Bombs?
Poorly crafted, ill-conceived, outdated buy-sell agreements—or worse, no agreement at all— offer endless examples of business owners who’ve set themselves up to destroy their own wealth! Many families and family businesses endlessly twist in the wind of litigation, as if a tornado has taken its toll, after a “triggering” event activates a poorly crafted, ill-conceived, or outdated buy-sell agreement. Crafting a good buy-sell agreement is as much about protecting owners, their...
What Is Your Bank Worth?
The economy has battered many industries but is hopefully improving after three years of recessionary forces. Your bank may be one of many that struggled greatly based on your loan portfolio and the industries you work with. You may be one of the fortunate ones whose income and loan portfolio were not really affected. Most likely, you are somewhere in the middle and have had some loan problems and, as a result, an increase in your loan loss provision has reduced your earnings. With the recent...
