Strategies to Reduce Capital Gains Tax After Exit

Reducing capital gains tax following a significant liquidity event is crucial for long-term wealth preservation. This document outlines strategic planning methods that encompass tax deferral, portfolio diversification, and risk management. It targets clients experiencing a $3M to $10M liquidity event, often founders or specialists with high income and limited post-exit structures. Key strategies include installment sales, donor-advised funds, charitable remainder trusts, and precise asset location and timing strategies. A case study within the document highlights how a structured plan can reduce tax drag and enhance diversification for a client exiting at $5M. An implementation roadmap suggests a structured approach over time with ongoing reviews to ensure sustainability.