When Paul, a successful construction business owner, decided it was time to pass wealth on to his children, he discovered a significant challenge: the future growth of his company could trigger hefty tax bills during the transfer of his estate. Seeking tax-efficient strategies for business owners, he reached out to WiseInvest™ for guidance.

The Problem

• Rising Business Value: Paul’s construction firm was on track for substantial growth, which meant increasing estate taxes down the road.
• Passing on Corporate Wealth: Paul wanted to protect his children from the financial burden of steep taxes, but needed a plan that wouldn’t compromise his control.

The Estate Freeze Solution

Our WiseInvest™ advisors introduced Paul to the concept of an estate freeze, a powerful tool in personal financial planning for business owners. Here’s how it worked:

1. Locking In Current Value
   Paul “froze” his existing shares at today’s appraised value. Future growth would accrue to newly issued shares, owned by his children or a family trust.
2. Reducing Tax Liabilities
   By locking in the value of the business at present levels, Paul minimized the amount that might be subject to taxes upon transfer or his passing.
3. Maintaining Control
   Despite shifting future growth to the next generation, Paul retained control of the business, ensuring that day-to-day operations and major decisions remained in his hands.

The Results

• Lower Future Taxes: Freezing the estate drastically reduced the tax burden on any future appreciation of the company.
• Secured Legacy: Paul’s children now benefit from the firm’s continued growth, without incurring excessive taxes that could eat into their inheritance.
• Peace of Mind: By using corporate funds for personal expenses carefully and structuring his assets strategically, Paul was able to protect the legacy he spent decades building.

If you’re looking for ways to protect your estate from escalating taxes, contact WiseInvest™. We specialize in personal financial planning for business owners, including estate freezes, so you can lock in your wealth, minimize tax exposure, and pass on a thriving legacy to the next generation.

*Note: For privacy reasons, the names and nature of our clients’ businesses have been changed.