[00:00:00.00] [MUSIC PLAYING]
[00:00:04.92] ADAM LUDMAN: I'm Adam Ludman. And I lead tax strategy for JP Morgan Private Bank. Many founders and executives of companies that are going through an IPO experience a major wealth transition event. The decisions those executives make, both before and during the IPO process, can materially affect their family's after-tax wealth.
[00:00:24.64] If you're going through this process, it's important for you to identify your goals for future wealth early. Doing so can help you make decisions that align with those goals and improve both your tax and overall planning outcomes.
[00:00:38.48] We have found that the clients who surround themselves with a coordinated team of advisors as early as possible set themselves up for success. This includes a financial advisor who can help construct a comprehensive wealth plan aligned with their goals, an accountant for tax advice, and an estate planning attorney for legal advice as they're putting their plan into action.
[00:01:02.48] Your team can help you understand exactly what you earn and what you own, including any equity-based compensation. Whether you have stock options, restricted stock units, founder shares, or something else, it's important to understand your holdings and develop an appropriate strategy for each. For example, options exercises, vesting events, and stock sales all trigger different tax consequences. And you should be mindful of what those consequences are.
[00:01:29.95] To avoid a cash shortfall when it comes time to pay your taxes, you should determine well in advance of any tax event whether you have sufficient liquidity to exercise options and manage your tax liability, including any potential alternative minimum tax and state tax exposure. You might be required to pay quarterly estimated taxes.
[00:01:50.55] If you expect your tax liability to increase significantly this year, you might be able to rely on a safe harbor to defer a portion of what you owe until your final tax payment is due in April of next year. If charitable giving is important to you, determine which assets and charitable vehicles may best help achieve your philanthropic goals.
[00:02:10.35] Beyond taxes, it's important to consider how new wealth fits into your broader plan. Think about what percentage of your future net worth could be tied to a single company. And develop a plan to manage any concentration risk over time.
[00:02:24.75] Here are a few things you can do right now. Meet with your financial advisor to create a comprehensive wealth plan. Work closely with your accountant to project potential tax liabilities and the precise timing of any tax payments. Review your estate plan with your attorney to ensure it works for you. And evaluate whether any wealth transfer strategies should be implemented before the valuation changes typically associated with an IPO occur.
[00:02:53.23] An IPO can be a transformational financial event for many company executives. And successful outcomes often result from the planning that occurred before the liquidity arrives. By taking a proactive and coordinated approach, you can position yourself to both manage taxes efficiently and align your new wealth with your long-term goals.
[00:03:14.91] Our team at JP Morgan Private Bank is here to help you navigate all of your fundamental planning decisions.
(SPEECH)
[MUSIC PLAYING]
(DESCRIPTION)
The J.P. Morgan Private Bank logo, above a boxed disclaimer that reads Investment and insurance products are: Not FDIC insured, Not insured by any federal government agency, Not a deposit or other obligation of, or guaranteed by, JPMorgan Chase Bank, N.A. or any of its affiliates, Subject to investment risks, including possible loss of the principal amount invested. Adam Ludman, a man with short brown hair in a navy blazer over a light blue shirt, stands in a modern office with a shelving unit of decorative objects and round tables behind him. A caption reads Adam Ludman, Head of Tax Strategy, J.P. Morgan Private Bank.
(SPEECH)
ADAM LUDMAN: I'm Adam Ludman. And I lead tax strategy for JP Morgan Private Bank. Many founders and executives of companies that are going through an IPO experience a major wealth transition event. The decisions those executives make, both before and during the IPO process, can materially affect their family's after-tax wealth.
If you're going through this process, it's important for you to identify your goals for future wealth early. Doing so can help you make decisions that align with those goals and improve both your tax and overall planning outcomes.
We have found that the clients who surround themselves with a coordinated team of advisors as early as possible set themselves up for success. This
(DESCRIPTION)
Text: Financial advisor, accountant, estate planning attorney.
(SPEECH)
includes a financial advisor who can help construct a comprehensive wealth plan aligned with their goals, an accountant for tax advice, and an estate planning attorney for legal advice as they're putting their plan into action.
Your team can help you understand exactly what you earn and what you own, including any equity-based compensation. Whether you have stock options, restricted stock units, founder shares, or something else, it's important to understand your holdings and develop an appropriate strategy for each. For example, options exercises, vesting events, and stock sales all trigger different tax consequences. And you should be mindful of what those consequences are.
To avoid a cash shortfall when it comes time to pay your taxes, you should determine well in advance of any tax event whether you have sufficient liquidity to exercise options and manage your tax liability, including any potential alternative minimum tax and state tax exposure. You might be required to pay quarterly estimated taxes.
If you expect your tax liability to increase significantly this year, you might be able to rely on a safe harbor to defer a portion of what you owe until your final tax payment is due in April of next year. If charitable giving is important to you, determine which assets and charitable vehicles may best help achieve your philanthropic goals.
Beyond taxes, it's important to consider how new wealth fits into your broader plan. Think about what percentage of your future net worth could be tied to a single company. And develop a plan to manage any concentration risk over time.
Here are a few things you can do right now. Meet
(DESCRIPTION)
Meet with your financial advisor.
(SPEECH)
with your financial advisor to create a comprehensive wealth plan.
(DESCRIPTION)
Work with your accountant.
(SPEECH)
Work closely with your accountant to project potential tax liabilities and the precise timing of any tax payments.
(DESCRIPTION)
Review your estate plan with your attorney.
(SPEECH)
Review your estate plan with your attorney to ensure it works for you. And evaluate whether any wealth transfer strategies should be implemented before the valuation changes typically associated with an IPO occur.
An IPO can be a transformational financial event for many company executives. And successful outcomes often result from the planning that occurred before the liquidity arrives. By taking a proactive and coordinated approach, you can position yourself to both manage taxes efficiently and align your new wealth with your long-term goals.
Our team at JP Morgan Private Bank is here to help you navigate all of your fundamental planning decisions.
(DESCRIPTION)
Logo: J.P. Morgan Private Bank.
KEY RISKS. This material is for information purposes only, and may inform you of certain products and services offered by private banking businesses, part of JPMorgan Chase & Co. (JPM). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information. GENERAL RISKS & CONSIDERATIONS. Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan team.
NON-RELIANCE. Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events. Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.
LEGAL ENTITY, BRAND & REGULATORY INFORMATION. In the United States, bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank, N.A. Member FDIC. JPMorgan Chase Bank, N.A. and its affiliates (collectively JPMCB) offer investment products, which may include bank managed investment accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC (JPMS), a member of FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPM. Products not available in all states. References to J.P. Morgan are to JPM, its subsidiaries and affiliates worldwide. J.P. Morgan Private Bank is the brand name for the private banking business conducted by JPM. This material is intended for your personal use and should not be circulated to or used by any other person, or duplicated for non-personal use, without our permission. If you have any questions or no longer wish to receive these communications, please contact your J.P. Morgan team. Copyright 2026 JPMorgan Chase & Co. All rights reserved.
