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Quantify Benefits
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At the culmination of Phase 1,
Family Offi ce Services prepares a Value
Proposition Letter that quantifi es the
benefi ts of planning before you
engage us, and determines your cost
of moving forward in the planning
process.
Drawing upon our experience
in developing hundreds of plans
for wealthy individuals, we are
able to show you specifi cally how
proper planning will lower
your estate and income taxes,
increase transfers to your
heirs, improve lifetime income,
enhance your charitable giving
potential, and achieve other
goals. You will see how tax
savings typically exceed our
fees by a factor of 200 to 1.
The Value Proposition Letter:
- Summarizes results of
current plan.
- Estimates potential
benefi ts of planning.
- Recommends a course of
action.
- Estimates
fees.
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| Value Proposition Letter Grid |
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Existing Plan |
Proposed
Plan |
| Current Year Corporate Income Tax |
$480,000 |
$255,000 |
| Current Year Personal Income Tax |
$140,000 |
$95,000 |
| Inheritance to Heirs |
$ 3,000,000 |
$ 8,000,000 |
| Estate Tax |
$ 2,000,000 |
$ 1,500,000 |
| Legacy to Charity |
$ 0 |
$ 1,000,000 |
| Projected After-Tax Retirement Income |
$ 170,000 |
$ 267,000 |
| Business Goes to Children |
No |
Yes |
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Proposed plan Summary |
| Reduced Corporate Income Taxes |
$ 225,000
for 10 years |
| Reduced Personal Income Taxes |
$87,000
over 2-6 years |
| Increased Annual After-Tax Personal Income Pre-Retirement |
$ 30,000 |
| Increased Annual After-Tax Retirement Income |
$ 88,000 |
| Eliminated Capital Gains Taxes on Sale of Business |
$ 750,000 |
| Reduced Estate Taxes |
$ 500,000 |
| Increased Net to Heirs |
$ 5,000,000 |
| Increased to Charity |
$ 1,000,000 |
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