Problem

The majority partner of a family owned consulting company wanted to sell his interest in the firm, retire comfortably and travel with family.  The company’s minority partners gladly banded together to purchase his partnership interest for $18 million. The only stumbling block for him to proceed with the sale, however, was more than $4.6 million in capital gains taxes he would have to pay.

TaxWealth Solution

Using a specially designed trust planning approach customized to his needs, his partnership interest is sold, the $4.6 million in federal and state taxes are eliminated entirely; he gains an additional $378,900 in income tax savings; and he and his wife receive tax-advantaged payments over multiple years totaling more than $16.3 million.