HomeSite MapContacts


Click to see samples of six planning tools:

Charitable Remainder Trust
Comprehensive Plan
Employee Stock Ownership Program
Grantor Deemed Owner Trust
Qualified Plan Strategy
Super CLAT

Employee Stock Ownership Program

Smith Enterprises establishes an ESOP, a qualified retirement plan. It will make tax deductible contributions to this plan annually based on payroll.
Thomas sells $3,750,000 of his stock to the ESOP. The company could arrange to finance this transaction with a lender. Alternatively, as in this illustration, Thomas finances the transaction personally by accepting a note in exchange for the stock. The note will bear interest of 8.5% and be amortized over 7 years.
Richard elects to reduce his compensation to $495,000. This will help the company finance the other elements of the overall arrangement. Despite this reduction, his total income from all sources will increase.
Smith Enterprises contributes $200,000 annually for 5 years to an incentive compensation plan.
Thomas receives future distributions from the incentive compensation plan. Thomas will receive 5 annual distributions from this plan beginning 6 years from the inception of the plan. We estimate the total gross compensation paid to Thomas over this time to be $1,772,000.

Legacy Resources, LLC is an Illinois Registered Investment Advisor