Names and identifying details have been changed to protect client privacy. The numbers and strategies are real.
The Andersons grew their business over three decades and exited at age 62, netting $50M in proceeds from the sale.
Facing a 40% estate tax liability on their $50M estate — a $20M tax bill — the Andersons had no plan in place to cover it without liquidating assets.
Teaming up with Praxis Insurance Partners, a customized policy was designed to insure both spouses, providing the exact liquidity needed to cover the estate tax bill when it comes due.
Johnson, LLC was built on a product Dad created that was revolutionary for its time. Now Dad and Mom are in their early 70s, and their sons — in their 40s — run the entire operation.
Some of the Johnsons' children are active in the business; others are not. Splitting the estate fairly meant finding a way to compensate non-active heirs without forcing a sale of the company.
Praxis Insurance Partners designed and built a plan utilizing an insurance product that provides the liquidity needed to equalize the estate among all heirs — active and non-active alike.
Summit LLC was a group of oral surgeons who had built a very successful practice in Chicago.
How does a multi-partner practice plan for the exit of a doctor and the buyout of their shares — while realizing the full value of the practice — without straining cash flow?
Praxis Insurance Partners designed and built a plan utilizing cash-value building life insurance that funds each partner's buyout as it comes due.
Heavy D Construction started in 1987 with two partners and grew into a large operation with multiple operating entities.
The operating agreement called for a buyout upon the death of a partner's surviving spouse — but there was no funding mechanism in place to actually make that buyout happen.
Using the Praxis Insurance Partners strategy, an insurance-only LLC was formed, and Heavy D Construction now has the liquidity in place to honor the buyout terms without disrupting operations.
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