A single holding that built the wealth is often the largest unmanaged risk in the portfolio.
Concentration is how most significant wealth is created and one of the more common ways it is damaged. The position that worked is rarely the position to hold forever.
Staged selling, exchange structures, charitable transfers, and hedging each address a different part of the problem, and each has a different tax consequence.
The right combination depends on basis, timeframe, and how much of the household balance sheet the position represents.
For informational and educational purposes only. This material is not intended to provide, and should not be relied upon for, tax or legal advice. Tax laws and their application vary based on individual circumstances and are subject to change. The availability and potential benefits of the strategies discussed depend on each business owner’s specific circumstances, transaction structure, and applicable law. Consult your tax and legal professionals before implementing any strategy discussed.