Attorney Steven Thomas Welch's Legal Cases

Estate planning

High Net Worth Life Insurance Planning

N/A

OUTCOME: 125MM life insurance; 2.2MM ordinary income tax deductions; 1.5MM premium reductions

Analyzed a 90MM under-funded, multi-owner and insured insurance portfolio for financial, life expectancy, estate liquidity, risk, cash flow, collateral, and other material factors and concerns; led a c ... ross-professional project team in the creative design and strategic execution of a premium financed re-platforming of the entire portfolio inside multiple BDIT's; deployed several indexed UL and term life policies, annuities, and money market and side risk mitigation funds; placed or replaced almost 125MM in life insurance alone while obtaining 2.2MM in available ordinary income tax deductions for insureds using 1035 exchange strategies, reducing annual premium outlay costs by over 1.5MM, and extending projected policy durations beyond the medical life expectancies of all insureds.

Financial markets and services

Commercial Real Estate Refinance

N/A

OUTCOME: 150K annual debt service reduction

- Audited multi-million dollar commercial debt portfolio for closely-held real estate limited partnership identifying cash flow, collateral, and other legal, financial, and tax risks; managed competiti ... ve bid process with multiple institutional lenders to mitigate long-term interest rate risk; analyzed market options for debt recapitalization and new real estate acquisition financing; created, designed, and implemented in cooperation with bank advisors and counsel a hybrid mortgage/revolving line 10Y maturity derivative swap credit facility to roll up a dozen then existing multi-term loans at an off balance sheet fixed rate that resulted in annual debt servicing savings in excess of 150K; planned, designed, and implemented a long-term investment strategy for the savings to create sufficient reserves to payoff balloon at maturity.

Tax

Gift Tax Planning

N/A

OUTCOME: 13MM generational wealth transfer; zero gift tax.

- Designed, created, and implemented complex wealth transfer plan involving multi-million dollar residential development with all parcels under purchase option contracts and an already issued zoning de ... velopment order; formed multiple business entities, performed statutory mergers and conversions, structured and executed the sale of several contingent real estate purchase and sale agreements, and obtained an AVA qualified appraisal resulting in valuation discounts for gift tax purposes resulting in 13MM in wealth transfer valued for gift tax purposes below client's available annual gift tax exclusions ($50,000.00).

Tax

S Corporation Planning

N/A

OUTCOME: 40% lease cost reduction; 50MM tax liability avoidance

- Identified inadvertent Sec. 1362(a) election revocation risk in lease relations between s-corporation and partnership sharing some but not all common ownership imperiling shareholders with over 50MM ... in income tax exposure; instigated market-based review of then-market commercial rental rates triggering re-casting of all lease agreements resulting in a 40% mean average reduction in NNN lease costs to s-corporation while improving cash position and maintaining debt retirement objective trajectory of partnership.

Employee benefits

401(k) Plan Restructuring

N/A

OUTCOME: Plan administration fee reduction over 35 basis points

- Discerned significant E&O risk to trustee of 3MM 401(k) plan with below market employee participation rates and excessive administration fees; led multi-firm, cross-professional team in due diligence ... and recommended alternative plan administrator and document options with key decision-makers adopting proposed candidate resulting in tripled employee plan participation, fiduciary risk-shifting to plan administrator, growth in plan assets to almost 10MM in two years, and reduction of plan administration fees by over 35 basis points.

Estate planning

Business Succession Planning

N/A

OUTCOME: 65MM potential estate and gift atx savings

- Deconstructed under-insured business succession plan tied to the 80MM FASB-appraised value of the closely-held business; created, designed, and implemented multi-generational integrated estate, busin ... ess succession, and asset preservation plan; employed a Sec. 368(e) tax-free voting/nonvoting corporate recap, reverse and ordinary stock splits and reclassification, cross-purchase buy-sell agreement termination, escrow cross-distribution of 35MM in life insurance, the tax free sales of those life insurance policies under Sec. 101, declarations of multiple spendthrift BDIT's, stock valuation discounting, sales to these defective trusts, and comprehensive "zero-estate-tax" general estate planning utilizing stacked-CLAT's, while placing an additional 10MM in life insurance, resulting in estate and gift tax savings of 65MM to family at current enterprise valuation of corporation.

Estate planning

HNW Wealth Transfer Planning

N/A

OUTCOME: 600K ordinary income tax deduction; 40MM potential estate and gift tax savings.

- Pinpointed business opportunity planning wealth transfer transaction for client with entrepreneurial telecom venture; seized chance to create, design, and implement defective trust sale of enterprise ... at 2MM valuation saving client almost 40MM in estate and gift taxes at today's venture capital valuation of 95MM; cooperated with cross-professional team in deploying a 1035 insurance into annuity exchange strategy that netted client a 600K ordinary tax deduction while placing 12MM in new universal life insurance coverage.

Estate planning

Asset Preservation Planning

N/A

OUTCOME: 10MM reduction debt/surety liability;

- Helped client buy real property using funds from a profit sharing plan to finance a multi-note commercial paper purchase that combined the deployment of a domestic LLC, a domestic asset protection tr ... ust, foreclosure and deficiency lawsuits, their reduction to enforceable judgments, and the institution of enforcement actions by obtaining the issuance of fi.fa.'s, initiating charging order proceedings; client reduced his long-term debt and surety liability by almost 10MM and obtained effective control of the profits from the sales of the originally encumbered assets at a 65% negotiated discount.

Steven Thomas Welch's Legal Cases (8)

High Net Worth Life Insurance Planning

Commercial Real Estate Refinance

Gift Tax Planning

S Corporation Planning

401(k) Plan Restructuring

Business Succession Planning

HNW Wealth Transfer Planning

Asset Preservation Planning