Tax Planning Case Study*

Husband and wife business owners 

Husband and Wife Business Owners, 55 years old, without children, who operate a successful $50 Million distribution business with: 

• $4 Million Income and $8 Million EBITDA 

• 12 Employees 

• Combined $80 Million Net Worth 


The client seeks to reliably and successfully enhance their current tax strategy. Goals to be addressed by Planning Network Partners include: 

  • Mitigation of current taxes 
  • Creation of charitable giving strategy 
  • Preparation for succession 
  • Consistency of tax-free income 


Working closely with our clients, we design and implement a dual strategy (for the client and business) to help them best address their challenges and achieve their objectives. 

For the the business: 

  • Establish pre-tax strategies for the employees of the company. • Implement Key-Person strategies.

For the couple: 

  • Put in place a DAF-driven charitable strategy that promotes our client’s philanthropic causes while alleviating a significant tax burden. 
  • Implement a consistent, tax-free income program. 
  • Design and implement an advanced estate planning strategy, utilizing the combination of a Dynasty Trust and 10-year GRAT structure to enable asset protection and freezing of current business value.


For the the business: 

  • Defined benefit plan provides $1 million in executive tax deferral annually. • Safe Harbor Captive (831b) provides $1.2 million per year in tax deferral for risk management.

For the couple: 

  • Charitable Giving Strategy allows $2.5 million per year deferral. • Leveraged insurance strategy collateralized by investable assets provides $1 million in tax free income taxable estate from year 11

The many moving parts of your estate – business, heirs, real estate, philanthropy, investments – need to be orchestrated in concert to maximize your legacy and reduce your loss to estate taxes. This requires significant inter-disciplinary expertise to realize the benefits and avoid the pitfalls. Planning Network Partners is dedicated to examining this and other opportunities as part of a larger picture of your whole financial health. 

Contact Us today for expert assistance.

* Source: (1) Momentum Advanced Planning