Strategies

Individual with a qualified plan that doesn’t want to take RMDs and would rather leave to their family in a more tax advantaged way. Move qualified funds out of qualified account to eliminate/prevent RMDs and leave more money to beneficiaries.

Individual with high-risk occupations or substantial assets. Protect assets from divorce and creditors.

Business owner looking to exit company within 5 years. Planning an exit strategy can help a business owner get more value for their company, reduce resulting taxes, and help them prepare emotionally and mentally.

Business owner looking for additional financing and wants more options that local bank can provide. Can help secure financing at any stage of business expansion.

Two or more owners/partners of a business. A legally binding agreement between co-owners of a business that governs the situation if a co-owner dies, or is otherwise forced to leave a business, or chooses to leave the business.

Business with traditional commercial insurance costs and concerned about risk management. Ideally over $20m gross revenue (although can be as low as $5m). Lower insurance costs, enhanced claims management, protect ancillary risk exposures, new profit line, asset protection.

Accredited Investor (Business Owner) looking for tax deductions. High W2 wage earner who is environmentally minded. Federal deductions up to 50% of your AGI. Feel good about “self directing” tax dollars into preservation of open land.

Business with annual expenses of $1m and up. Average results are 28% savings in business expenses 98% of the time. Increased EBDITA, more efficient process, and increased capacity for growth.

Real estate owned by individual or for profit entity. New or existing building, including all types of commercial properties and apartment buildings. Save taxes and generate positive cash flow by accelerating the depreciation from 39 years to typically 5, 7, or 15 years.

Business Owner looking to exit company, reduce taxes, and leave a legacy. Owner can sell without paying the capital gains taxes (Tax code section 1042) and sell in stages. The business will remain independent and intact, and the people working there will get the opportunity to keep it going.

Non-resident alien who has already or is buy property in the US, or is contemplating a move to the US. Avoid 40% tax above $60,000 in US assets.

Creating or using multiple entities can help a business owner reduce taxes, risk, and direct more investment benefits to themselves verse employees.

Business owner looking to finance buy/sell or retirement/estate plan. High net worth individual motivated to leave more to beneficiaries. Can leverage bank funds to secure permanent insurance and significantly reduce the out of pocket cost of life insurance. Can also reduce taxes for business owner.

Business owner or W2 looking to lower income taxes or Individual looking to reduce taxes due on windfall (sale of assets, stock options, etc). Significantly reduce taxes due on income or the sale of assets.

The grantor puts specified assets into the trust. For a term specified in the trust, a specified distribution of at least one non-charitable income recipient must be made, once a year. In most cases, the CRT is exempt from taxes. This is an excellent way for a grantor to eliminate low-yielding, high-appreciated property without paying any capital gains taxes.

There are situations where the proceeds from a life insurance policy could be subject to estate taxes. It’s possible for a grantor to avoid this by setting up an ILIT. In this situation, the beneficiary becomes a trustee. They will relinquish all ownership. This will result in the life insurance proceeds not being part of an estate.

This type of trust works similar to a QPRT, but the assets covered are securities, cash, and other investments. A grantor can use a GRAT to cover a specific term. This trust makes it possible for a granter to give large gifts to designated beneficiaries and avoid paying large gift taxes.

This makes it possible for a granter to transfer ownership of their residence into a trust for the benefit of a designated beneficiary. The grantor who sets up a QPRT trust will also maintain the right to continue using the residence. This results in a significant decrease in the amount of any gift taxes that may need to be paid.