Success stories

Eleventh Hour Interception Significantly Reduces Tax Bill

The Challenge

Pam and her husband were divorcing and Pam was about to purchase the home she and her children would be living in. Pam was working with Tom, an agent in the Los Altos office of Intero, and they had put an all-cash offer on a home in Half Moon with a five-day close. Pam had spoken with an advisor where her investments were held to determine how to raise cash from her portfolio to fund the purchase, but hadn’t received any guidance on the tax implications of that raise. Pam was looking at a $300,000 tax bill.

The Goal

The team at Summitry was called to evaluate the current portfolio and holdings to determine how much cash could be raised with minimal tax impact.

The Solution

While some financial advisors consider real estate to be a competing asset class, at Summitry we believe real estate is a critical component of our client’s balance sheet. We dug into Pam’s existing portfolio and figured out a way for her to raise enough cash for a significant down payment, resulting in about $80,000 of taxes, rather than $300,000.
Another colleague, Karen at Prosperity, was enlisted to put together a new loan in about 24 hours with a 10-day close. Tom negotiated a new offer with the listing agent for a 14-day close. Through thoughtful consideration, creative thinking, and professional collaboration, Pam saved $220,000 and is enjoying Half Moon Bay with her children.

Next up:

Financial Modeling & Legacy Planning

*Actual client situation with the names changed for privacy. Please see disclaimer below.

This case study contains an actual client situation with the names changed in which Summitry has provided financial planning advice. There is no guarantee that similar results will be achieved for other financial planning clients. It is unknown if the clients on which this case study is based approved or disapproved of Summitry's services. Summitry's advice is based each client's specific situation and contains multiple factors. Summitry may make recommendations to one client that may differ from the advice given to another client.

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Aaron Szager

Advisor Group Manager