High Net Worth Individuals Tax Planning, Structuring and Compliance
High net worth individuals require tax planning, structuring, and compliance to help ensure they are minimizing both tax liability and risk. Cendrowski Corporate Advisors’ consultants take an integrated approach to tax planning and preparation that combines deep experience with a client-focused approach.
The Cendrowski Corporate Advisors tax team has deep expertise in preparing all types of tax returns, including but not limited to 1040 (individuals), 1041 (trusts), 1065 (partnerships), and 1120S S Corp returns.
You’ll work directly with approachable tax professionals focused on overseeing all of your returns—individual, trust, liability company, corporations, and S corps. Our system of controls allows the same Cendrowski Corporate Advisors team to prepare all related returns for a Family Office.
An integrated approach to tax planning is essential for high net worth individuals.
U.S. tax systems require deep technical knowledge, research, and planning. We ensure that every return is completed with a 100% focus on quality, integrity, and maximum tax efficiency. The Cendrowski Corporate Advisors tax practice thoroughly tracks and coordinates all filing and reporting so that our clients can approach tax compliance engagements with accuracy, consistency, and assurance.
Client Success: High Net Worth Individual Tax Planning, Estate Tax Return and Valuation
We were engaged in restructuring an estate tax return and a valuation for the estate. The estate was valued in the eight-figure mark and had to be broken down into guaranteed annual return to grantor and transfer of assets to descendants at only 7% of the gross value, a 90+% discount. After our engagement, our findings resulted in estate tax savings in the tens of millions of dollars.
The details? A complex estate, organized with numerous multi-family real estate assets and liquid assets held for new acquisitions, was designed into a three-tier flow-through of income and distributions. The first tier was analyzed like a standard family limited partnership (FLP) or Tier One. The Tier One limited partnership interests were transferred to a newly formed LLC (Tier Two), which gave total control to a Class A Member Group, and the Class B Members (99%) had no voting rights or any form of control of any cash flow passed through from Tier One. The Tier Two 99% Class B interests were passed up to a Preferred Equity LLC (Tier Three), where the interests in the LLC were recapitalized into Class A Members (Preferred Equity) and Class B Members (Junior Equity). The Class A Members receive a fair market annual rate of return (preferred return) on the fixed value amount attributed to the Class A Members. The Class A Member value was established at about one-half the fair market value of the 99% interests contributed with an annual return to the Class Members in low seven figures. The Junior Equity was sold to a descendants’ trust at 7% of gross value.