Client Case study #1

Kate Higgins, 38

Australian business owner living in the US

Primary Goals:

• Preparing her business to be sold in a tax-efficient manner
  
• Devising plans to retain key long term employees
  
• Creating and implementing an investment plan for the business sale proceeds
  

Business Exit Planning

• Preparing her business to be sold in a tax-efficient manner
  
• Devising plans to retain key long term employees
  
• Creating and implementing an investment plan for the business sale proceeds
  

US Departure Planning

• Creating a currency-adjusted budget to reflect her cash flow back in Australia
  
• Opening an investment account to hold US/Australian investments/currency
  
• Establishing US and Australian bank accounts that will work well from abroad
  
• Establishing a US retirement account for her business to make the most of tax deductible contributions while in the US and devising a tax efficient re-contribution strategy for Superannuation
  
• Designing and implementing a foreign exchange conversion strategy
  
• Risk management - business insurance policies, disability insurance, and health insurance.
  
• Understanding the tax systems of both countries and implementing a plan to minimize her global tax bill
  

The Approach

Kate wasn’t sure where to begin, which is why she pursued professional help from a financial planner. Plus, she is extremely busy running her business. She doesn't want to get bogged down trying to figure everything out on her own.

The Results

When Kate hired a financial planner, she was concerned about more than just her investments. She wanted help with the entire financial picture, especially selling her business, moving to Australia, and minimizing her tax liability in the US and Australia. We introduced her to strategies that have saved her millions in taxes, while setting her up to start a family and live the life of her dreams in Northern NSW.

A comprehensive plan was put together that met all her needs:

• We put together a team including a US-Australia cross border accountant, business value consultant, and business broker to help Kate sell her business.
  
• We created and walked through a customized 'Departing US Checklist' to review the various financial implications and action items that come along with her move back to Australia.
  
• We set up a multi-currency investment solution which allowed her to buy a house back in Australia using her US portfolio as leverage.
  
• We established a Charitable Remainder Unitrust (CRUT) and funded it with gross proceeds from the business sale to reduce her tax liability, provide a lifetime income stream, and benefit her desired charitable organizations in the event there were remaining assets.
  

Note: The above case study is hypothetical and does not involve an actual Areté Wealth Strategists client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if Areté Wealth Strategists is engaged to provide investment advisory services.