Banknotes

By: Jeff Collins, Vice President & Trust Officer

At some point in our lives, we may inherit a home or another form of real property, which the Internal Revenue Service defines as “land and generally anything built on or attached to it.” To prepare for that possibility, it’s helpful to gain an understanding of some of the jargon that one can reasonably be expected to encounter when inheriting real estate. For instance, what does “cost basis” mean? And what is a “step-up,” and what kind of tax break does it offer?

By: Dan Savage – Senior Vice President and Senior Trust Officer

I want to control my property while I am alive and well, care for myself and my loved ones if I become disabled, and be able to give what I have to whom I want, the way I want, when I want, and, if I can, I want to save every last tax dollar, attorney fee, and court cost possible.

By: Jordon Geiger, Vice President and Trust Officer

What is a legacy? Is it the continuing operation of your business? It can be. Your personal wealth? Your family’s wealth? The brand image and reputation you’ve built? The lifestyles and careers of your children or other successors? Yes to all.

There is no formula a business owner can use to address the emotional side of succession. But there are strategies and leading practices an owner can use to confirm that his or her legacy isn’t left to chance.

By: Dan Savage, Senior Vice President and Senior Trust Officer 
and Cathy Durham, Shareholder, Capital Valuation Group

If you own a business, odds are that it is your single largest asset. This has profound, long-term implications for you and your family’s financial well-being. 

Every business owner should develop a clear and accurate understanding of the value of his or her business. I often find myself discussing this topic with valuation expert Cathy Durham, a shareholder of Madison-based Capital Valuation Group. 

By: Alyssa J. Chance, J.D., Vice President & Personal Trust Officer

Is 2019 the year?  If so, congratulations!  Whether your plan is to stop working cold-turkey or ease into retirement slowly, there are a few things that will help make the transition easier and more stress-free.

By: Dan Savage, Senior Vice President and Senior Trust Officer

An important gift to your family and yourself is to create thoughtful order in your financial life, and that includes providing for the proper care and administration of your estate…during your lifetime and upon your death.  The ultimate benefit is peace of mind.

By:Alyssa J. Chance, J.D., Vice President & Personal Trust Officer

When it comes to succession planning, company leadership often considers and plans for the impact of a change in management style and corporate vision. Many companies, however, fail to consider the financial impact of such a major transition, even if all other aspects of a change in leadership are a resounding success.

Your succession plan should include a budget.

By: Dan Savage, Senior Vice President and Senior Trust Officer

Family businesses are typically operated by a principal shareholder whose involvement may be extensive.  Should that principal be lost to death or disability, the main priorities become continuing profitable operations and maintaining the company’s value.

By: Dan Savage, Senior Vice President and Senior Trust Officer

What is a short-term contingency plan?

A short-term contingency plan is a strategic guide that can be used by your business to deal with your sudden, unexpected absence from the business, as in the case of disability or death. Your contingency plan should map out a procedure for the continuation of business operations that can be followed until longer-term plans are established. Even if you have made arrangements for succession of ownership of your business interest through your will or a buy-sell agreement, you still need a plan for succession of management. A short-term contingency plan can provide for the transfer of duties and continued business operations during the transitional period leading to the transfer of ownership.

By: Jordon Geiger, Vice President and Trust Officer

In the next 20 years, we will have perhaps the largest transfer of wealth in history.  Much of the transfer of wealth will be in the form of transferring a business.  According to the US Census Bureau, as of 2012 there were approximately 44,000 firms located in Dane County.  Most of these firms are owned and operated by local individuals who at one point plan to monetize their legacy by forming a business succession plan. Read more on Business Succession Planning from this great article from Broadridge Investor Communication Solutions, Inc.