One of our families is in the business of investing in, managing and
developing real estate. Many of the real estate assets were purchased in the 1980s and 1990s. Prior to consulting with us, the family would have had to pay a large amount of capital gains tax upon the sale of most of their properties. We have structured their estate plan to provide a step up in cost basis upon the death of the eldest member in the family, providing for over $5 million dollars in capital gains tax savings. This tax savings will allow the family to reposition the capital moving forward in a more growth-oriented fashion.
The son of this family is actively involved in the management of their real estate portfolio. Our advice enabled this family to shift the majority of the assets outside of his taxable estate. Even with conservative return assumptions, our plan could save this family in excess of $500 million in estate taxes over the next 50 years. Additionally, the family business is now structured in a way that provides for a significantly greater level of protection from threats posed by creditors, predators, and divorce.