Bob, age 75, has a successful $20 million business that he has been selling off to partners in stages each year. He still have $4 million left to sell. In addition to the business, the couple has real estate, investments and $3.5 million in Bob’s IRA (which he’ll never need for lifestyle purposes in retirement). The family has no life insurance and their net worth is very liquid.
SOLUTION AND RESULT
Installed a pension rescue plan and converted IRA to $12 million in life insurance. Removed it from estate and generated tax savings of $950,000.
Gifted $4 million to IGNIT PLANTM, saving $2.1 million of income tax. Generated lifetime income to children and grandchildren and $17 million gift to charity.
Created LLC and transferred $9 million of assets. Sold to a family trust for a note and moved all future growth outside of the estate.
RESULT
Children and grandchildren receive $20 million more than original plan. Charity gifted $17 million. IRS gets is no more than $3 million.
