Transforming a Family Real Estate Business
Pursuant to a succession plan to run the family’s real estate business, our client faced disorganized internal financial records, unexpected tax penalties, complex ownership structures, a challenging family situation, and the added challenge of navigating leadership during the COVID-19 pandemic.
The Challenge
Taking over a family business is never easy but for our client, the transition was particularly overwhelming.
Despite joining the company approximately 10-15 years ago as part of a succession plan, stepping into a business owner's role brought unforeseen complexities. Our client felt underserviced and dissatisfied by their previously retained legal and accounting professionals. The lack of guidance and support were contributing factors to unexpected tax penalties and financial disarray across both the business and the family estate.
Managing cash distributions and the company’s intricate ownership structures proved to be a constant struggle, further complicated with family tension.
On top of it all, the COVID-19 pandemic disrupted in-person collaboration, making it even harder to fully understand the operations and portfolio. Our client needed a trusted and valued advisor who could bring clarity and stability to the business, and peace of mind for their family. Furthermore, our client sought an advisor that could simply answer their questions in a timely fashion and provide time or money saving strategies.
The Approach:
Our initial engagement was limited to business and personal income tax compliance and assurance, but we quickly realized our client needed more than these traditional services.
She needed a trusted partner to help untangle the complexities of her business and family’s finances. In addition to tax compliance, and assurance services, including financial statement audits for NJ PILOT projects, we ensured transparency and compliance while addressing her broader financial needs through:
- Frequent Onboarding Discussions—We worked closely with the client to understand their personal and business priorities.
- A Safe Space for Sensitive Matters—We created an open, secure environment for sharing family and financial challenges.
- Comprehensive Analysis—Our team conducted an independent, detailed review of the company’s holdings and ownership structure, demonstrating our expertise and providing valuable clarity.
- Thoughtful Engagement—From answering complex financial questions to celebrating milestones with small gestures, like food platters or donations to the client’s supported charities, we nurtured trust and partnership.
Project Timeline
Our service plan included the following phased strategic approach.
The Impact
What began as a tax-focused engagement quickly evolved into a comprehensive advisory relationship, where Wiss became an integral part of the family’s financial and estate planning strategy. By providing both tactical solutions and personalized guidance, we helped the client regain confidence in their leadership and set a foundation for long-term business and personal success.
Key Results:
- Streamlined Ownership Structures—We created detailed organizational charts for the company’s portfolio, simplifying ownership distribution calculations. Wiss communicates regularly with the company to notify if there are any changes in ownership and maintains these charts on an annual basis. The company uses these charts as a reference to calculate distributions to ownership.
- Tax Savings—Our strategic recommendations, such as consolidation of payroll, QBI Deduction aggregation, NJ BAIT & other state PTEs, and cost segregation studies, significantly reduced tax burdens.
- Estate Planning Leadership—We took on the role of primary consultants, collaborating with the client’s estate attorneys to their family’s financial future and save on estate taxes.
- Expanded Support Services—We provided wealth and investment management for non-real estate holdings, offering greater financial oversight.
- Personal Counseling—Our support extended to the client’s family members, including financial and tax counseling, which alleviated personal stress.
- Community Connection—By attending family gatherings, we strengthened our role as a trusted advisor and invested in their personal and professional success.