Sample of Client Profiles

JAY AND ELIZABETH’S CHALLENGE

After decades of hard work as a land developer, building $40 million net worth, and years of 1031 exchanges to avoid capital gains taxes, Jay and his wife, both 67, need to protect their wealth from litigation and taxes and realize a comfortable monthly income to enjoy retirement. The couple lay awake at night, worrying about unprotected assets in a litigious industry, missing out on capturing equity in a booming real estate market and, more importantly, outliving income.

ADVICE RECEIVED FROM CURRENT ADVISORS

Jay and Elizabeth were told to sell these assets and pay $9 million in capital gains taxes to generate monthly retirement income. They were told to pay the tax and be happy that they had such great fortune. Assets remained exposed to liability, and upon their deaths their children would pay over $10 million in estate taxes. 

REYES CAPITAL GROUP SOLUTION

Reyes Capital Group created a tax solution that legally saved Jay and Elizabeth $9 million in taxes. Now, Jay and Elizabeth will enjoy life and retirement with an income of more than $3 million per year, and their wealth is protected from lawsuits and creditors. In the meantime, the $9 million savings grows and adds to their wealth. Further, their children will inherit assets free of estate tax.

JEFF AND CHRISTINE’S CHALLENGE

Jeff and Christine invested in a $1 million property. Now they are tired of the hassle of property ownership and want to cash out and benefit from a $2.1 million sales price after the home has appreciated.

EXISTING ADVISOR ADVICE

Jeff and Christine were told to bite the bullet and pay over $250,000 in federal and state taxes. After a friend told them about Reyes Capital Group and the Asset Transfer Trust that saved him hundreds of thousand of dollars, Jeff and Christine decided to gather more information about other options before they just paid the taxes.

REYES CAPITAL GROUP SOLUTION

Reyes Capital Group created an Asset Transfer Trust (A.T.Trust) into which Jeff and Christine placed the property before escrow closing, establishing a tax-deferred transaction, therefore saving the $250,000 in capital gains tax. The A.T. Trust ultimately sold the property. In turn, the A.T.Trust pays the couple a lifetime annual income of $113,500* which can be invested in a diversified portfolio as the client and Reyes Capital Group see fit. The IRS will receive all of the tax due, but it is paid over the sellers’ lifetime – an interest-free loan from the IRS. The remaining assets will pass on estate tax free.     

*assumes a 7% growth rate over 30-year period.

JOHN AND SANDRA’S CHALLENGE

In their mid-fifties John and Sandra enjoy running a very successful privately held business. Although they contribute $80,000 to a profit sharing plan annually, they need to reduce taxes and save more for their rapidly approaching retirement. They were concerned about taxes and worried that they wouldn’t have the quality of life they deserved upon their retirement.

ADVICE RECEIVED FROM ADVISOR

John and Sandra were told they couldn’t increase contributions to their profit sharing plan.

REYES CAPITAL GROUP SOLUTION

Reyes Capital Group allows John and Sandra to make a combined $500,000 pension contribution each year for the next 5 years. This decreased their income tax liability, saving the couple $1 million dollars over five years. Reyes Capital Group increased the couple’s retirement savings from $400,000 to $2,500,000 over the same time period, thus significantly maximizing cash flow and assuring the lifestyle they wanted.