thecomplexestateAllen and Nancy Wilson are 58 and 53 respectively. Both are physicians with a combined annual income of 
approximately $300,000. Many years ago they invested in a company that was designed to grow through acquisition of other similar companies.
The company now has significant value and generates $4-$6 million in annual taxable income for our clients. The bad news is that the company only makes distributions sufficient to pay taxes on the income.
As a result of shareholder revolt, the company has now agreed to provide an additional $1M in distributions to Allen and Nancy until the expected sale of the company, which should occur sometime in the next 5 years.
Upon sale of the company, there will be an enormous capital gains event for Allen and Nancy. They currently spend about $750,000 per year and expect to be spending their investment account principal over the next few years until the company sells and provides them with a large influx of cash.
This story ended on a positive note. Thanks to the shareholder revolt, these clients were able to achieve significant success through the advanced planning process.
Now onto the remaining five hundred plus shareholders….
Filed under: Advanced Estate Planning, advanced tax planning, Estate Planinng, high net worth tax planning | Tagged: Advanced Estate Planning, Business Succession Planning, Business Transition Planning, Capital gain, estate planning, Shareholder, Tax Planning, Taxable income | Leave a Comment »
