Meet the Client
CLIENT: The company is a full-service truck repair and parts provider.
OWNERSHIP: Our client is an active shareholder who works full-time in the company. Our client plans to plans to transfer a portion of the business to his two sons in six months.
WHAT OUR CLIENT WANTED: Our client wants to gift a portion of the business to his two sons in six months in the most tax efficient manner. The client was interested in developing an entity structure to best protect his business and personal assets. He also wanted tax-advantaged employee benefit and deferral strategies for himself, his wife and other key employees. Our client also wanted to learn more about estate planning strategies to reduce future estate taxes and probate costs.
HOW WE MET THEIR EXPECTIONS: TAVAS devised a plan for our client that offered substantial tax savings. TAVAS recommended a reorganization that will protect the client’s assets by segregating them into a new multi- entity structure that includes protecting their real estate as well. To transfer ownership to his two sons, TAVAS recommended several tax-efficient strategies including the option to maintain managerial control while giving up some equity interest. Additionally, we provided estate planning recommendations that would allow the shareholders to further reduce their potential estate tax liability and probate costs.