Primary Goals:

• Put his financial life together in a cohesive and thoughtful plan.
• Optimize taxes especially considering her immigration and traveling history, reduce when possible, and retain compliance in the US
• Outsource wealth responsibilities to an expert
• Devise a plan that optimizes her investments and benefits:
• Profit sharing assets
• Personal assets
• Deferred compensation plan
• Equity compensation (in the form of options, restricted stock units (RSU’s) and Performance-Based Restricted Stock Units (PSUs)) and employee stock purchase plan (ESPP)

• Disability insurance
• Life insurance
• Health insurance
• Directors and officer insurance
• Property insurance.
• Evaluate her stock concentration and create and implement an investment plan that removes the risks.
• In case of an untimely death ensure her family can continue with their accustomed life and goals they have planned for themselves
• Provide guidance on any transition to another employer
• Educate and keep her compliant on International assets

Results Executed:

Wealth Enhancement and Tax Planning

• Consolidated assets into a plan accounting for foreign exchange and asset location and transitioned those assets where needed specifically to avoid Passive Foreign Income (PFIC).
• Removed stock concentration risk, when possible, and created one diversified portfolio across all accounts (reducing taxes) that attempted to maximize expected return and considered Emily's specific risks.
• Created a foreign exchange plan to bring assets over to the US when made sense.
• Reduced cost of investment
• Evaluated Emily's family cash flow and reduced income, taking full advantage of her benefit programs to reduce taxes. Additionally, minimized taxes on equity transactions and harvested losses when possible.
• Utilized a Health Savings Account to reduce current and future taxes.
• Developed a Roth conversion planning strategy to reduce life time taxes.

Asset Protection and Estate Planning

• Evaluated insurable risks both inside the benefits at her company and personally and, collaborated with Emily and other experts on the best policies and mitigation for her.
• Evaluated uninsurable risks and collaborated with Emily and other experts on how to mitigate those risk in the form of legal structures and best practices.
• Evaluated the protection and safety of assets, collaborated on costs and other approaches to protect the exposed assets.
• Collaborated with other experts and created a foreign trust to take advantage of international tax laws on a specific move outside the US.
• Evaluated estate wishes, including the care for Emily's family, and taxes, collaboratively developed a plan prior to bringing in an several estate attorney’s and tax attorneys with the appropriate experience, specialties and region to provide the expertise and execute the plan.
• Developed a list of assets to be placed in each country and ensure they complied with the estate plan and ensured any non-US beneficiaries avoided unnecessary taxes.

Transition Planning

• Created a compensation and benefits score card to compare to outside offers.
• Reviewed non-compete clause and separation policies of his company to evaluate risks on new employment.
• Reviewed negotiating approaches to consider when negotiating for a new position.
• Reviewed planning and implications of the Heart Act (exit tax) and planning necessary based on if she decides to domicile outside the US

Disclosure

Note: The above case study is hypothetical and does not involve an actual Pacific Capital Works 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 Pacific Capital Works is engaged to provide investment advisory services.