A family has built up a large medical practice that has attracted the attention of private equity investors, and various private equity firms were already approaching this practice to make a purchase. We assisted this family in the negotiations with the potential buyers, and restructured their business so they could command a higher price. This family is now on track to sell their practice for much more than originally anticipated. Our plan also allows for the family to discount the value of their business when calculating estate taxes by nearly 30%-35%—equating to an estimated future estate taxes reduction of $15 million.

Additionally, because the parents of this family financially support their children, we created a structure to shift income from the parents to the children, taxed at the children’s tax rate instead of the parents. Employing this income shifting technique allows for the parents to save an estimated $200,000 in income taxes each year.