Services
We let the results speak for themselves.
Asset Preservation
- Diversity
- Balance Risk/Reward
- Reduce Interest Rate Risk
- Take Advantage of Compounding
Estate Planning
- Will – directs your assets
- Trust – transferring assets
- Charitable gifts – giving your assets
- Life Insurance – Liquidize your assets
Income Tax Reduction
- Minimize your taxable income
- Take advantage of all available tax credits and deductions
- Control when you pay taxes
Wealth Accumulation
- Analyze your assets and liabilities
- Balance risk with reward
- Target specific investments
- Develop Tax Strategies
- Develop strategies to access your money
Wealth Management
- Diversity
- Balance Risk/Reward
- Reduce Interest Rate Risk
- Take Advantage of Compounding
What We Do
The key to great wealth is as simple as a goal and a plan to achieve it.
Wealth Accumulation
A key that unlocks the door to wealth is an effective plan. Your plan must be as unique as your own particular circumstance. It must be consistent with your financial goals, time frame and risk profile without jeopardizing your current lifestyle.
What do we need to do?
- Analyze your assets and liabilities
- Determine how you want to allocate your assets: CDs, money market, annuities, retirement funds, life insurance, cash values, etc.
- Balance the risk with reward
- Target specific investments
- Develop tax strategies
- Develop strategies to access your money
You need to look at the whole picture, create a plan that works for you and commit yourself to carrying out that plan.
Income Tax Reduction
Everyone is required to pay income taxes but nobody needs to pay more than their share.
The best way to manage overpayment of taxes is to develop a tax
strategy that:
- Minimizes your taxable income
- Reduces your tax rate
- Takes advantage of all available tax credits and deductions
- Controls when you pay taxes
Tax planning is NOT tax avoidance or tax evasion. Tax planning is simply making the most of your revenue while lessening your tax obligation. An effective income tax reduction plan takes advantage of what is legally available to you and is appropriate for your needs, goals and risk tolerance. Tax planning involves an in-depth analysis of your financial and tax situation. The tax impact and consequences of your investments will be scrutinized so that you do not miss out on deductions and credits that you are entitled to have. Your tax planning will be done by professionals who understand current tax law, who are familiar with the most recent changes in the laws and who are aware of proposed legislation that may impact your future decisions.
Our goal is to decrease your taxes and make the most of your earnings.
2.2 million Americans overpaid their taxes by approximately $948 million.
Source: GAO Report / March 2002
Asset Preservation
A secure financial future does not happen by accident. It takes planning and protection to preserve what you spent a lifetime building.
Building Blocks of Asset Preservation
- Diversify
Remember that no category of assets is always going to be a top performer. The knowledgeable investor spreads money among various investments and continually re-balances his/her portfolio so that “winners” can offset “losers.” - Balance Risk/Reward
Divide your investment amount so that you can take advantage of higher return vehicles while keeping a fixed account in reserve. - Reduce Interest Rate Risk
Interest rate changes can work for you no matter which way they move. If rates move up, your shorter-term money is soon available to re-invest at higher rates. If interest rates move down, your longer-term money grows at rates higher than current rates. - Take Advantage Of Compounding
Numbers really do add up and compounding makes them add up faster. This happens when you re-invest your earnings rather than taking them in cash. Now you are earning on your original investment and your accumulated earnings.
Estate Planning
Estate Planning is a lifelong process of acquiring, utilizing, preserving and then, transferring your assets. Proper estate planning can help you reduce the amount of taxes your estate will owe and plan for the distribution of your assets. Estate planning provides the peace of mind that comes from knowing you have taken the steps necessary to help ensure the security of your family.
Effective estate planning helps you answer these crucial questions:
- Who will receive my estate?
- How can I help ensure financial security during my lifetime and for my family after my lifetime?
- How can I reduce or eliminate taxes, administrative expenses, and delays in connection with the transfer of my estate?
- How can I provide liquidity to cover taxes, debts and expenses my family and I may owe?
Estate planning is not just for the wealthy. When you die, the government assesses the value of everything you own – your home, your business, other real estate holdings, insurance policies, savings, retirement plan assets, government benefits, personal property and so forth. Taxes can be quite sizeable if you do not plan for them.
Estate planning also entails allocation of your assets. The four most common ways to make sure your estate is distributed according to your wishes are:
Will – a legal declaration that directs the way your assets are divided
Trust – a method of transferring assets to your beneficiaries. There are many types of trusts we can generate for you such as living trusts, QTIP Trusts, Irrevocable Life Insurance Trusts, and/or Charitable Remainder Trusts
Charitable gifts – a way to give some of your assets to selected organizations and thereby reduce the amount of taxes you owe
Life Insurance – a way to provide immediate cash to your family
Success Stories
Income Tax Reduction / Wealth Accumulation
Cornelius (Cliff) Floyd (Retired Major League Baseball)
Cliff was a referred client that has been with Hansbrough Financial Services Inc for over 8 years.
After building a rapport with Ronald, Floyd accepted the instruction that can help him reach his financial goals for the future. We have assisted him in offering annuities and Life Insurance that deals with Restricted Property Trust (RPT) for the objective to provide tax favored long-term cash accumulation and income distribution in a conservative vehicle. RPTs can provide better results than an alternate investment. We are currently helping Floyd utilize the importance of Life Insurance as an estate planning to assist in transferring his wealth.
Medical Malpractice Settlement
Mallonise Scott
Mallonise Scott underwent pain and suffering under the care of Catholic Health Partners Services/St. Anthony Hospital. The Circuit Court of Cook County in Illinois found the defendant guilty settling the case at nearly $2MM.
Mrs. Scott sought the assistance of Ronald Hansbrough, after learning he had the experience and knowledge on how to help her maximize the awarded money. After accepting the financial instruction from Mr. Hansbrough, Mrs. Scott received a complete plan to secure her cash, promote money growth, pass wealth to her beneficiaries, and receive income to accommodate her living expenses.
Medical Malpractice Settlement
Tanisha Fennell
Tanisha Fennell missed on the opportunity to be raised by her mother, Frances Dismuke. For over 15 years Tanisha and her father, Donnell Fennell, were misled into believing Frances was going to survive a trauma to her brain which had resulted from County Hospital technicians inadvertently disconnecting Ms. Dismuke’s breathing apparatus. This took place shortly after giving birth to Tanisha. After a long struggle to get answers from Doctors, Mr. Fennel took the case to court to seek justice for Frances and their daughter. Cook County officials approved a medical malpractice settlement of more than $9MM.
To ensure he could safeguard Tanisha’s future, Mr. Fennell knew he needed to seek guidance from someone he could trust. As a result, he chose Ronald Hansbrough, to be their personal financial representative. For eight years, Ronald has provided legal and financial direction beyond the office desk. His personal involvement and management prompts growth and security to Tanisha’s Estate.
Wrongful Death Settlement
Robert Russ, Jr.
Robert Russ, Jr. lost his father to gunfire in June 1999. A Chicago police officer wrongfully shot Robert Russ, Sr. on the Dan Ryan Expressway. Although there is no dollar figure that can replace the life experiences of growing up with your father, the Cook County Circuit Court Jury awarded Robert Russ, Jr. over $9MM for his loss.
Erin Lewis, mother of Robert Russ, Jr., realizes she can never bring back Robert’s father, however securing his future has become her priority. As a result, she chose Ronald Hansbrough to be their personal financial advisor. For almost ten years, Ronald has joined Erin and her son in the fight for what is financially best for Robert Russ, Jr. The advice provided by Ronald has secured additional funds for Robert’s Estate.
How Can a Restricted Property Trust Help You
Concept Overview
What is a Restricted Property Trust (RPD)? What are the objectives of an RPT?
The RPT is an employer sponsored plan for owners and/or key executives. The primary objective of an RPT is to provide tax favored long-term cash accumulation and income distribution in a conservative vehicle. An RPT can provide better results than an alternate investment earning 8%.
What are the tax characteristics of an RPT?
Each annual contribution is fully deductible by the employer and only partially taxable to the participant. Asset growth is in the cash value of a life insurance policy and therefore is tax-deferred. The policy is distributed to the participant at plan termination, at which time a portion of the cash value is taxable.
How does and RPT achieve these results?
Fully tax deductible contirbutions are made by the business to an RPT for a select group of participants. Of this, a portion is considered current taxable income to the participant. The remaining contribution funds the life insurance and is not considered taxable income to the participant.
The RPT tax treatment depends in part on provisions of the life insurance contract and in part on the provisions of the trust. One key trust provision is that the employer must make the selected annual contribution each year for the restricted period. Failure to make the annual contribution causes both the policy to lapse and the surrender proceeds to be given to a pre-selected charity. This creates a critical “risk of forfeiture”. After the policy is distributed, the participant can maintain it for the death benefit, use it to generate non-taxable cash flow, exchange it for a larger income stream (annuity) or potentially exchange it for a larger, guaranteed death benefit.
Who can participate in an RPT? Are there limits on participation?
This plan is available to anyone with earned income, whether from an S Corp, partnership or other business entity. An RPT is not a Qualied Plan, so participation limits and tests do not apply, and contributions to an RPT do not impact any Qualified Plan contributions. Participants in an RPT can each select their own level of contribution regardless of what other participants contribute.
Frequently Asked Questions
What is a Restricted Property Trust (RPT)?
The RPT is an employee benefit plan that provides a 100% corporate tax deduction and only a partial current income inclusion. Resulting in a signicant net current deduction to owner-employees.
Is the RPT a qualified plan?
No, the RPT is governed under other Tax Code sections. These code sections do have certain limitations.
What types of corporate entities are able to fund an RPT?
C Corporations, S Corporations, LLC’s, and Partnerships may set up a Restricted Property Trust. Sole proprietorships cannot.
Is a Restricted Property Trust a form of deferred compensation?
No, in a deferred compensation plan the corporation only receives a deduction equal to the inclusion of the participant. In other words, deferred compensation cannot provide for a net current tax deduction.
Can the RPT be set up in favor of Owners and key Employees?
Yes, unlike qualified plans, the Restricted Property Trust may be used exclusively to benefit the owners of the company. It is fully discriminatory.
What is the annual contribution limit?
The annual contribution limit is tied to “reasonable compensation”. This would typically allow a high-income-earning business owner to contribute several hundred thousand dollars per year or more.
Does the Restricted Property Trust have a death benefit?
Yes, should a participant die prior to completing the funding; a death benefit will be paid to the named beneficiaries. Thereby self-completing the plan design.
Why doesn’t everyone set up an RPT?
The RPT is not for everyone. First, the planned funding period must be for no less than five years, and any plan extensions must be for no less than five years. If the company is unable to make the annual contribution to the RPT, the assets inside the plan are forfeited to a pre-determined charity of the owners choice.
Why is the RPT so strictly governed?
In order to acheive the benefits of the strategy the RPT is subject to the rules governing “property transferred in connection with goods and services”. If the owner is deemed to have “constructive receipt” of the property, or control over the asset, there is no current tax deduction. This is called a “substantial risk of forfeiture” and that is what prevents the plan from being considered deferred compensation.
Our Team
Hansbrough Financial Services (HFS) has a team of executives that have been providing Estate planning since 1986, with astounding results specializing in unique estate and retirement planning through the use of life insurance, annuities, and other financial products necessary to fulfill the goals and objectives of each individual client. HFS operates effectively in both English and Spanish, with our highly trained experienced agents providing bilingual services to your customers.
Ronald Hansbrough
President, CEO
In 1986, Ronald Hasbrough opened the doors to Hansbrough Financial Services (HFS) as a Master Certified Estate Planner.
HFS services over 25 states across America. Our company specializes in the areas of Wealth Accumulation and Management, Asset Preservation, Income Tax Reduction, and Estate Planning.
Ronald Hansbrough is an active participant in the minority business industry, and holds a sponsorship with the National Black McDonald’s Owner Operators Association (NBMOA) and the Minority Franchise Association (MFA).
Cynthia Rosales
Office Manager
Cynthia was selected to a team of top finance. She has over 5 years of working experience at a top-tier bank, and in corporate finance where she accumulated sufficient experiences of financial data analysis, business development, and client relationship skills.
John McCulloh
Legal Consultant
Martin & McCulloh, P.C. is a Chicago area law firm that provides a variety of client- focused legal services to a diverse client base.
Michael Lewis
President of Operations
Michael has worked side by side with Ronald Hansbrough for more than 10 years by accompanying him to various investment seminars and conventions. Michael is in charge of the Sales and Marketing department of HFS.
Clients
Here are some of the various Owner Operators we have helped in the past.
- Benjamin & Kelly Alston – College Park, GA
- Steven & Denise Bentham – Houston, TX
- Anne H. Bland – Falls Church, VA
- Melvin Buckley – Richton Park, IL
- John & Carol Bullock – Lansing, IL
- Clifton & Shirley Butler – Aurora, IL
- Darrell Byrd – Memphis, TN
- James Byrd, Jr. – Memphis, TN
- Henry & Karen Coaxum – East New Orleans, LA
- A.C. Crenshaw – Denver, CO
- Dave Damson – Chicago, IL
- Dr. Derrick Dawson – Hammond, IN
- Phillip & Deborah – Douglas South Holland, IL
- William & Sarah Edwards – Washington, DC
- Jacqueline & Anthony George – Athens, OH
- Spotwood & Ida Green – Belaire, OH
- Lawrence & Marina Hagan – Parkland, FL
- Aaron & Cassandra Harris – Watchung, NJ
- Gerald Harris – Chicago, IL
- Lenard Harris – Chattem, IL
- Alonzo Hayden Sir. – Calumet City, IL
- James Hayes – Wickliffe, OH
- Donald Henry – Chicago, IL
- Elizabeth Henry – Indianapolis, IN
- Aaron & Damita Holland – Boulder, CO
- Paul & Michelle Hoskins – San Antonio, TX
- Aaron Houston – Dallas, TX
- Saidah Hunt – Chicago, IL
- Van Jakes – Atlanta, GA
- Arnett & Wanda James – Marion, SC
- Bennie Jones – Chicago, IL
- James & Annie Jones – Houston, TX
- Willis & Clara Langley – Columbia, SC
- Jewel Lockhart – Chicago, IL
- Samuel & Maria Lias – Dallas, TX
- Dr. Rita McGuire – Chicago, IL
- Kenneth & Onni McCoy – Bedford Heights, OH
- Roland Marshall – Okemos, MI
- Kenneth & Sharon Meeks – Jacksonville, FL
- Albert & Francenia Merritt – Moon Township, PA
- Eric Moore – Fisher, IN
- Daron & Avalyn Pace – Dallas, TX
- Barry & Brenda Person – Vineland, NJ
- Judson & Donna Pickard – Cincinnati, OH
- John & Jean Potts – Detroit, MI
- Robert Russ Jr. & Sr. – Country Club Hill, IL
- Bernard & Elizabeth Saffold – Milwaukee, WI
- Ira Salls – Louisville, KY
- Charles & Betty Specht – W. Sacramento, CA
- Linda Simmons – Chicago, IL
- Annis & Harry Staley – Annandu, NJ
- Turan & Cheryl Strange – Cleveland, OH
- Patricia Sweezer – Chicago, IL
- Leroy & Terryce Walker – Jackson, MS
- Ruby Washington – Jackson, MS
- David White – New Orleans, LA
- Warrick White – Chicago, IL
- Earl Williams Sir. – Broadview, IL
- Samuel Williams – Baton Rouge, LA
- Willis Williams – Chicago, IL
Contact Us
We appreciate your interest in our firm and sincerely look forward to serving you.
Please contact us with questions or to set-up an appointment with Hansbrough Financial Services.
