Personal Finance
Personal Finance
Beyond Simply Investing.
As a successful business owner and entrepreneur, you know your business better than anyone. But what about the business of managing your wealth? Often, taking care of your personal financial affairs can be more complex than running your own business.

That's why so many business owners turn to the professionals at PNC for comprehensive wealth management services. Financial success takes careful planning, continuous monitoring of your financial situation and adjusting your plan as new events occur in your life and your business.

Challenge #1: Selling Your Business

Challenge #2: Passing Your Business On

Challenge #3: Asset Protection

Professional Challenge # 1:              Selling Your Business
Will the sale of my business provide enough for my family and my charitable wishes?

Professional Wealth Management



John, 59, has most of his wealth tied up in a successful advertising agency. As he nears retirement age, he is seeking to liquidate the business. However, he has a few concerns on his mind that keep him up at night.

  • John is concerned about the tax implications that would result from the sale. How much of the proceeds will he have to pay in taxes?
  • He wants to leave a lasting, charitable legacy to his community in which he has been active for the past 40 years.
  • And, finally, he wants to ensure that he and his wife have an income stream sufficient to support their desired lifestyle throughout their retirement years.
Working with John's legal and tax advisors to address his concerns, PNC suggested a Charitable Remainder Trust (CRT), funded by gifts of stock in the agency.

Once the sale of John's agency is complete, PNC would invest the sale proceeds - undiminished by taxes - in a customized investment portfolio, designed to produce income that will be distributed from the CRT to John and his wife.

The couple will use some of that income to make cash gifts to a wealth replacement Irrevocable Life Insurance Trust (ILIT). These gifts will pay life insurance premiums on a policy on John and his wife owned by the ILIT. When John and his wife die, the ILIT will distribute the life insurance proceeds tax-free to John's family. The remaining assets in the CRT will be distributed to a designated charity.

This solution helps John accomplish his charitable objectives, while preserving income for his lifetime and saving substantially on income and estate taxes.

Where Do You See Your Business in Five Years?
If the answer is "sold", talk to PNC Wealth Management who can team up with a PNC Mergers and Acquisitions professional to help you sell your business. Our full range of services includes a professional business valuation of your company, identifying potential buyers, coordinating the bid process and even working with your attorneys to take the deal all the way to closing. Afterwards, when you receive the proceeds from the sale, PNC Wealth Management can help you plan for your future by proposing solutions that potentially minimize your taxes and help to preserve your wealth.

1. Provided the creation of the trust was not a fraudulent conveyance. You should consult with your legal counsel.

Professional Challenge # 2:              Passing Your Business On
What's fair where my children are concerned?

Professional Wealth Management



Henry, 67, the owner of a closely held chemical company, is ready to retire and is preparing to turn over ownership of his business to his three children. Like many business owners in this situation, Henry wants to preserve the integrity and reputation of his business after he retires. However, he is concerned about treating each child equally and doing what is right for the business.

  • His eldest child, Kristin, is highly involved in the business and has the leadership skills and business savvy to succeed him.
  • Devin, his second child, is married, lives in another state and works in a completely different field.
  • Suzanne, the youngest, works for the company but isn't inclined to participate in the management of the business.
How will Henry fairly divide the business' value among the children, given their varying degrees of involvement?

To help ease Henry's worries, a PNC Wealth Management professional worked with his attorney to formulate a plan to pass controlling interest in the business to his eldest daughter, Kristin. This was accomplished by issuing her voting stock in the company, while giving Suzanne non-voting stock.

Since Henry's outside assets are not sufficient to allow for an equalization of his personal assets among the three children, PNC also recommended a life insurance policy on Henry's life. The policy would be purchased and owned by an Irrevocable Life Insurance Trust (ILIT). It could provide both liquidity to the estate and cash to Henry's son, Devin, equalizing the value of the business interests passing to Kristin and Suzanne. It could also provide cash to equalize the gift to Suzanne, if necessary.

This solution helped Henry achieve his goal of retaining control of the business within the family, while equalizing gifts among all three children.

Professional Challenge # 3:              Protecting Your Assets
Am I at risk of losing it all? I can't afford to start over.

Professional Wealth Management



Martha, 45, is a principal in an accounting firm specializing in consulting to the biomedical and pharmaceutical industries. She is also on the board of directors of a local bio research company. Given today's litigious society, it occurs to Martha how fortunate she has been for the past 15 years.

Despite her day-to-day involvement with her clients, she has managed to escape any damaging lawsuits thus far. But what may be in store for her in the next 15 years? She is apprehensive about being sued so she has decided to talk to a PNC Wealth Management professional.

To help safeguard her assets against a damaging lawsuit, PNC recommended that she discuss with her legal counsel the possibility of establishing a Delaware Asset Protection Trust. By transferring assets to the Trust, Martha may reduce the risk of losing all of her assets in the event of an unforeseen lawsuit.

How Can You Benefit from an Asset Protection Trust?
Lawsuits often are generated by forces beyond your control, such as a natural disaster or an injury to a client or patient. An Asset Protection Trust is one way to help safeguard your assets against an unforeseen lawsuit, which could potentially harm your practice and life savings. A properly constructed Asset Protection Trust may protect you in the event of a lawsuit.1 Additionally, your funds will have the potential to grow for multiple generations if you incorporate Dynasty Trust provisions. The investment professionals at PNC Wealth Management can help you invest your assets within the Trust so you can achieve your financial goals.

1. Provided the creation of the trust was not a fraudulent conveyance. You should consult with your legal counsel.