100 to 1 Strategy

Overview

This strategy uses an LLC with charitable intent in coordination with a donor-advised fund to create powerful income, capital gains, and estate tax savings while retaining full control of their assets. This effectively reduces 100% of the taxable consequences of a transaction down to 1%.

Solution Detail

• Pre-Sale Tax Analysis is completed: https://taxwealth.com/pre-tax-sales-analysis-advisor/
• Strategy Introduction Meeting – 1 hour via Zoom
• Due Diligence Materials provided by TaxWealth
  • 100-1 Plan Synopsis
  • CLLC Strategy Summary – 7-page document
  • CLLC E-Book
• Strategy Engagement via DocuSign – 50% Engagement Fee paid at the time of engagement or via Escrow if a sale occurs
• Establish an LLC with Charitable Intent
• Transfer assets to the newly formed LLC
• Form a Donor Advised Fund (DAF)
• Contributed Assets are then appraised for Estate Tax Purposes
• 99% of the LLC’s (Non-Voting/Non-Controlling) Limited Partnership Units are gifted to the DAF thereby generating the Charitable Tax Deduction
• Life Insurance is used as replacement value for beneficiaries as well as collateral for loans during the use of this structure: 3-6 month process average
• The remaining 50% Engagement Fee is paid once the LLC with Charitable Intent is completed
• Assets held in this structure are out of the reach of business and personal creditors and not subject to estate taxes

Target Use Case(s)

• Minimum Sale Price or Asset Value of $2M
• Appropriate for:
  • Real Estate
  • Publicly Traded Stock
  • Privately Held Businesses for sale
  • Crypto
  • Other Capital Assets generating passive income
• NOTE: Active/Ongoing Business Enterprises can NOT be held in the LLC with Charitable Intent
• High-Income Earners: 32% Tax Bracket and above

Referral Compensation

• Based on TaxWealth’s Flat Fee Compensation Schedule for Tax Strategy Engagements  (Insert Document Link Here)
• Life Insurance Commission: Compensation to TaxWealth is split 50/50 provided the referring advisor is licensed for life insurance production
• Alliance Partner:  60/40 Split of the Planning Fee Compensation in favor of the Alliance Partner
• NOTE: If TaxWealth Receives a simple introduction and completes all the work of analysis, education, document collection, and strategy implementation, the Referral Compensation Split will be 20% to the Alliance Partner
• Any Advisor or Client Referral from the TaxWealth Alliance agrees to these terms unless otherwise stated