Our foresight saved a client over $500,000 in personal income taxes

Situation

Cunningham brings a wealth of insight and experience to ensure our clients plan for the success of their business today, and tomorrow. In this case, our client was the sole owner of a successful business operating several private educational and learning institutions.

While they did not anticipate a sale of the companies in the immediate future, the owner wanted to be prepared for any eventuality.

Solution

Under our advice, the owner initiated a reorganization of the business for tax planning purposes and introduced a discretionary family trust, which included several members of the shareholder's family.

A number of years later, the client received an unsolicited offer to sell the companies. Thanks to our foresight in recommending the setting up of a discretionary family trust, the shareholder's family members were able to utilize their capital gains exemptions on the sale of the business. This resulted in approximately $517,000 in personal income taxes being saved.