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 a lifetime income they can comfortably rely on for retirement.