Problem: Selling a business without income tax planning
Solution: Joe used a CRT and got the business assets into this lifetime trust before the sale was complete. Joe was able to defer the capital gains tax due on his profit on the sale for lifetime and create a valuable legacy for the charity of his choice.
His family was better off, the charity was better off, and Uncle Sam got less. The additional income stream he received from the CRT facilitated the purchase of life insurance using the tax savings to replace the value of his asset donated for the benefit of his family tax free.
“Over 90% of business owners that sold their business regret not having done income tax planning before selling”