Software Developer Needs Captive Insurance Specialist

  • A software developer with a $250M net worth and a $17M net income wanted to reduce his taxable income and develop an efficient wealth transfer/estate liquidity plan.
  • The client’s CPA had been a long time partner/client of VFO Hub with Fact Pattern Analytics and asked us to assist.
  • VFO Hub analyzed the Fact Pattern, paying special attention to the client’s goals and objectives.
  • After careful consideration of many possible combinations of solutions, VFO Hub decided to bring in their top Captive Insurance Specialist, a leading Tax Attorney to design the charitable strategy and their Tax Credit specialist.
    • Together the VFO Hub Team was able to reduce the taxable income from $17M to $0, saving the client over $6M in taxes.
    • They were able to use a proprietary estate planning strategy to move the majority of the net worth to a third party owned trust, that is controlled by the client, thereby reducing the amount of life insurance that would be needed to provide estate liquidity.
    • The tax savings were invested so that they would double in value every 10 years, net of taxes and fees.
Posted in