Busy Executive

Josh Motlong

Case Study

Busy Executive

The Original Situation

  • Couple in their late 40’s and had 4 children.
  • He was an executive in a large company and was earning substantial income and bonuses.
  • He deferred a large portion of his annual bonuses and was anticipating a big tax event at retirement.
  • Had highly appreciated investments that would need to be sold at some point in the future.
  • Did not have any plans for a lifetime inheritance.
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The Strategies

  • They created a Giving Fund to set aside extra money for giving while they had excess income and needed the income tax deductions so they could give in their retirement years.
  • We developed a strategic giving plan to give appreciated investments instead of cash, avoiding capital gains taxes.
  • We utilized a Charitable Pooled Trust for the deferred income to minimize income taxes and provide an income stream for their retirement.
  • We created a lifetime inheritance strategy allowing for their children to receive their entire inheritance during their lifetime.
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The Results

Original Plan New Plan

Maximize Family Value

Lifetime Income: Increased 11%

Lifetime Inheritance: Remained the Same

Post-Death Inheritance: Decreased 100%

Minimizing Taxes

Income Taxes: Decreased 27%

Inheritance Taxes: Completely Eliminated

Optimize Giving

Lifetime Giving: Increased 131%

Total Giving: Increased 306%

Case studies are for informational and illustrative purposes only and not to be considered a guarantee of results.
Actual results will vary with each situation.