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Loaning money to family members is a common and often informal affair: parents front a mortgage down payment for an adult child, for example, with an expectation that it’s repaid over time (or not).  Aside from the emotional risks of loaning money to a family member who may or may not be expected to repay the debt, the Internal Revenue Service could be a vested third party whose involvement could complicate the transaction.

Complex employment contracts, with untraditional benefits packages and a myriad of equity grants and options, are commonplace at the upper echelons of corporate leadership. It is crucial that these employees understand the facets of the contract, can manage the tax and cash flow implications that could be triggered by some elements of the package, and plan for wealth-building events and milestones accordingly. At Cranbrook Wealth, our investment professionals are seasoned in reviewing corporate employment contracts and setting a wealth management strategy that aligns with your current lifestyle needs as well as family legacy goals. We typically encourage executives with employment contracts to carefully consider the following areas: