Asset Protection Planning
Case 1: The Developer: This couple owned a residence worth $2 million (subject to a $1 million mortgage), $40 million in various brokerage accounts, and LLCs in a variety of projects with questionable value given the real estate market’s downturn. The husband, a developer, had given a personal guaranty for a project and was, therefore, highly concerned about his liability.
Case 2: The Architect: An architect was concerned about potential liability arising out of his involvement with the construction of an office building. His assets included; his home with a view of the ocean, worth $1,000,000, his investment real estate of another $3,000,000, his retirement plans worth $2,000,000; and liquid assets of another $2,000,000.
The results: In both cases Givner & Kaye first reviewed all of their important documents, such as tax returns and estate plan documents. Then the firm met with the clients to review and understand all of their goals and objectives. As a result of the Review, Givner & Kaye designed structures to meet the clients’ goals and objectives. In the Design meeting the clients selected those structures with which they were most comfortable. After implementing the structures, the clients were able to sleep more easily at night knowing that their assets were protected from a future creditor.
The case: The IRS had asserted a $14 million deficiency against the client’s estate.
The result: Givner & Kaye pursued the matter in both IRS Appeals and U.S. Tax Court and ultimately negotiated a settlement of $2 million.
The case: The IRS asserted that a pipe and supply company had overpaid its shareholder-employees by several million dollars. As a result, the IRS asserted a $2.6 million income tax deficiency.
The result: Mr. Givner filed a petition in U.S. Tax Court. The court’s decision was that 100% of the compensation was “reasonable,” as a result of which the taxpayers owed nothing.
The case: A father was audited by the IRS which disallowed a $400,000 income tax deduction for legal fees and other costs related to a lawsuit. He had been sued for importing beverages that were labeled as being by a major beverage company but were, in fact, fraudulently labeled. His defense was that someone had stolen his import license. He settled the case because it would have been too expensive to litigate against this large national corporation. The IRS felt that the lawsuit was unrelated to the father’s business which was the import of housewares from the far east.
The result: Givner & Kaye filed suit in the United States Tax Court to prevent the collection of the tax. As a result the matter was sent to the IRS appeals office. In the appeals, a settlement was reached which allowed the taxpayer to deduct 85 percent of the amount in dispute. He was extremely pleased with the result since the cost was so modest and the result occurred so quickly.
Estate Tax Planning
The case: A husband and wife owned a shopping center worth $5,000,000; other investment real estate of another $15,000,000; liquid assets of $2,000,000; a principal residence worth $2,000,000; and insurance policies with a face value of $5,000,000. They were very interested in passing the greatest amount of wealth to their daughter and grandchildren at the lowest possible gift, estate tax and generation skipping transfer tax cost.
The result: Givner & Kaye helped the couple through the Review-Design-Implement-Maintain process. As a result of the structures established, husband and wife were able to rearrange their estate so that they knew that upon their deaths their retained interests would be reduced in value by significant valuation discounts. They were also able to transfer a great deal of wealth to irrevocable trusts for their heirs without the payment of gift tax.
Income Tax Planning
The case: A business owner with 80 employees with a net of $12,000,000 per year had been shown a defined benefit pension plan which would achieve a $2,000,000 deduction funded completely by life insurance, about 35 percent of which would be for the benefit of the business owner.
The result: Givner & Kaye advised the business owner to establish a retirement plan which achieved a $2,000,000 deduction, partly funded by life insurance, 60 percent of which was for the benefit of him and his family.
Read the client and professional testimonials on Givner & Kaye to see how our expert tax attorneys, estate planning lawyers and asset protection specialist can help you to save money on taxes, make more money and gain peace of mind over all estate planning, tax planning, tax litigation and asset protection matters.