USA – CONNECTICUT Law and Practice Contributed by: William Kambas, Lawton Leung and Samantha Kopf, Withers
Withers 157 Church Street
New Haven Connecticut 06510 USA
Tel: +1 203 302 4100; Fax: +1 203 869 0558;
Email: inquiries.gw@withers.us.com Web: www.withersworldwide.com
1. Contemporary Cultural Considerations in Succession Planning 1.1 Social and Cultural Attitudes Connecticut has a long‑established and sophisticat- ed population of highly educated and experienced individuals, an important percentage of whom have amassed notable financial wealth based on national and international standards. This is particularly con- centrated along the Gold Coast of Fairfield County and in legacy industrial and financial centres like Hartford and New Haven Counties, with many families pos- sessing multi-generational wealth tied to closely held businesses, investment management, private equity, hedge funds and real estate. Succession planning in Connecticut is influenced by a cultural emphasis on preserving family control, sta- bility and privacy, often favouring long‑term trusts, dynastic planning (frequently through out‑of‑state trust structures) and professional fiduciary oversight rather than outright dispositions. There is broad acceptance of freedom of testation, tempered by a pragmatic respect for family harmony and business continuity, especially where operating companies or family offices are involved. Philanthropy and commu- nity engagement – particularly in education, healthcare and cultural institutions – are significant components of legacy planning, but typically complement the goal of maintaining family wealth and enterprise continuity across generations, rather than displacing it.
1.2 Wealth Profiles and Industry Influences Connecticut’s private wealth profile is shaped in par- ticular by the private placement funds industry, pri- marily but not exclusively in the south western part of the state, alongside longstanding concentrations of wealth in healthcare, insurance, aerospace and defence in Hartford and New Haven Counties, as well as state-wide real estate development. The state’s proximity to New York City has facilitated a deep base of hedge fund, private equity and alternative invest- ment principals (often representing relatively liquid, performance‑based “new wealth”), for whom estate and income tax planning emphasises carried interest structuring, residency and domicile analysis, liquidity management, and sophisticated trust and family office arrangements. By contrast, healthcare systems, aerospace manu- facturers and real estate developers frequently reflect “old and new” operating wealth, with planning focused on closely held business succession, valua- tion discounts, governance continuity and the align- ment of estate planning with executive compensation and long‑term capital investment cycles. Together, there is a willingness to engage in sophisticated and advanced tax planning, bespoke fiduciary structures and co-ordination between estate, income tax and business succession strategies, particularly in light of Connecticut’s state‑level estate and gift tax rates.
230 CHAMBERS.COM
Powered by FlippingBook