What Is Tax Planning?
Tax planning is the process of proactively managing a client’s financial strategies to minimize tax liabilities while maximizing wealth accumulation. This approach goes beyond preparing tax returns; it’s about integrating tax strategies into overall wealth management. For advisors and agents, tax planning ensures you’re offering clients a more comprehensive, holistic approach to their financial well-being—something today’s clients increasingly demand.
At Assurance Ally, we believe tax planning isn’t just a value-add; it’s a necessity for building trust and long-term client relationships.
Why Tax Planning Matters
Deliver Holistic
Financial Solutions
Tax planning is the missing link in many advisory services. By incorporating tax strategies into your client offerings, you can help them save more, invest smarter, and achieve financial goals more effectively. This holistic approach differentiates your services and drives deeper client satisfaction.
Elevate Your
Role as an Advisor
Clients seek advisors who can provide forward-thinking, integrated solutions. By collaborating with Assurance Ally, you can offer tax planning expertise without having to become an expert yourself. This enhances your credibility and strengthens your client relationships.
Unlock New
Revenue Streams
Tax planning complements wealth management & insurance strategies, opening opportunities for advisors to increase client retention and revenue. Partnering with Assurance Ally ensures you have the tools, support, and expertise to maximize these opportunities while minimizing your administrative workload.
How Assurance Ally Can Help You
At Assurance Ally, we specialize in empowering financial advisors and insurance agents to offer robust, client-centered services that go beyond just selling products. With our unique Virtual Family Office model, we provide:
Collaborative Tax Strategies
Work with experienced tax strategists to integrate tax planning into your client offerings seamlessly.
Expert Case Support
Our team becomes your advocate, providing personalized 1:1 support to help you deliver tailored solutions.
More Time for Your Clients
Let us handle the administrative and technical work so you can focus on what matters most—client relationships and business growth.
Advisors who partner with Assurance Ally see increased production, higher client retention, and improved work-life balance, all without needing to master tax planning on their own.
Example Tax Planning Strategies for Business Owners and High-Net-Worth Individuals
Below are some examples of strategies advisors can recommend to business owners and HNW individuals:
Balloon CLAT A Charitable Lead Annuity Trust (CLAT) with payments that start low and have one large payment at the end, maximizing tax benefits while supporting charitable causes. The balloon CLAT can pass a large benefit to the family free of estate and gift tax free. | Bargain Sales Sell assets to a charity at a reduced price, receiving immediate cash while securing tax advantages and supporting a cause you care about. | Charitable Gift Annuities A donation-based contract where you provide a gift to a charity in exchange for fixed lifetime income and potential tax benefits. | *Charitable Lead Trusts A trust that provides income to a charity for a set period (Or a lifetime), with the remaining assets passing to beneficiaries or reverting to the donor, offering immediate income tax savings. | Annuity Withdrawal A strategy for drawing income from annuities in a tax-efficient manner while preserving financial security. | *Asset Protection Legal and financial strategies designed to shield wealth from creditors and lawsuits. |
*Charitable Life Estate Donation of a principal residence, usually while retaining lifetime use, securing an immediate tax deduction while ensuring a future gift to charity. | *Charitable Remainder Trust A trust that pays income to you or others for life or a set term, with the remainder going to charity, usually to defer long term capital gains on an appreciated asset and estate planning advantages. | Leveraged Gifting Options Advanced strategies that amplify the impact of charitable gifts using tax-efficient financial tools and asset transfers. | Donor Advised Fund A flexible charitable giving account that allows you to make tax-deductible contributions, grow funds tax-free, and recommend grants to charities over time. | *Business Succession/ Transition/ Selling Structured plans to transfer or sell a business smoothly while maximizing value, minimizing taxes, and ensuring continuity. | *Buy-Sell Agreements Legally binding agreements that outline the transfer of business ownership in the event of retirement, disability, or death, protecting owners and heirs. |
FLIPCRUT A Charitable Remainder Unitrust (CRUT) that "flips" from net income to standard payout upon a triggering event, ideal for gifting illiquid assets. | IGNIT Plan(TM) This is a multi-generational Pooled Income Fund. | Private Foundations A personalized charitable entity that enables ongoing philanthropy, tax benefits, and control over grantmaking and investment decisions. | *Corporate Recapitalization A restructuring strategy that normally provides for different shareholder rights, normally voting and non-voting. This is done to facilitate estate planning and wealth transfer. | *Crummey Powers A provision in irrevocable trusts allowing beneficiaries to make temporary withdrawals, enabling contributions to qualify for the annual gift tax exclusion. | *Dynasty Trust A long-term trust designed to preserve family wealth across multiple generations while minimizing estate taxes. |
NIMCRUT A Charitable Remainder Unitrust that pays beneficiaries the trust’s net income, with the option to make up for lower payments in high-earning years. | Preferred PIF(TM) A specialized Pooled Income Fund (PIF) offering enhanced payout structures and tax advantages for charitable giving. | Family Limited Partnership A legal structure that centralizes family assets, and allows for the simplified transfer of hard to divide assets. | Family LLC A flexible business entity used to manage and protect family assets, reduce estate taxes, and facilitate generational wealth transfer. | GDOT A specialized trust structure allowing the grantor to pay income taxes on trust earnings, preserving more wealth for beneficiaries. | *Irrevocable Life Insurance Trust A trust designed to hold life insurance policies outside of an estate, reducing estate taxes while providing liquidity for heirs. |
TCLAT A CLAT created at death through a will or trust that allows the donor to zero out estate taxes while supporting charitable causes after death while ultimately transferring assets to heirs free of estate tax. | Young PIF A pooled income fund that is less than three years old and therefore uses a federally published rate to determine the charitable income tax deduction. | *Gifting A tax-efficient strategy to transfer assets to family, friends, or charities while reducing estate taxes and maximizing wealth transfer. | *Golden Handcuffs Compensation strategies designed to retain key employees by offering financial incentives that vest over time. | Grantor Retained Annuity Trust A trust that allows a grantor to transfer appreciating assets to heirs at a reduced tax cost while retaining annuity payments for a fixed period. | Life Settlements The sale of an existing life insurance policy to a third party for more than its cash surrender value, offering liquidity to policyholders. |
Intentional Non-Grantor Trusts A trust structure designed to separate assets from the grantor’s taxable estate, often used for state income tax planning. | Intra Family Loans Loans between family members structured to facilitate wealth transfer, reduce tax liability, and preserve family assets. | Jurisdictional Trusts Trusts established in specific states or countries with favorable tax, asset protection, or privacy laws to optimize wealth preservation. | *Key Person Insurance Life or disability insurance on a critical employee or business owner, providing financial stability in case of their unexpected departure. | *Life Insurance A financial tool providing a death benefit to beneficiaries, often used for income replacement, estate planning, and wealth transfer. | *Retirement Planning Strategies for building and managing wealth to ensure financial security and tax efficiency in retirement. |
Preferred LPs Limited partnerships structured with preferred return features, and the ability to "freeze" the value of an approeciating asset. | *Premium Finance A strategy where third-party financing is used to pay life insurance premiums, allowing high-net-worth individuals to preserve liquidity. | *Private Business Insurance A tool that allows business owners to acquire business insurance and realize profits from low claims experience. Effectively replaces captive insurance structures. | QPRTs A trust that allows homeowners to transfer a primary or vacation home to heirs at a reduced gift tax value while retaining use for a set period. | Rent To Own A method for business owners to acquire speicalty insurance coverage and benefit from the profits of low claims experience. | IRA Rollover/ Conversion Alternatives Tax-efficient strategies for moving retirement savings from one account to another, including Roth conversions and alternative rollover options to optimize tax impact. |
Retirement Tax Mitigation Techniques to minimize taxes on retirement income, including Roth conversions, tax-efficient withdrawals, and strategic asset placement. | *Revocable Living Trusts, DPAs Estate planning tools that allow for asset management during life and smooth transition at death, avoiding probate while ensuring financial and healthcare decisions are managed effectively. | Sale for Installment Note A tax-efficient strategy for transferring assets by selling them to heirs or trusts in exchange for structured payments over time. | SCIN A special type of installment sale where remaining payments are forgiven upon the seller’s death, reducing estate tax liability. | ESOP Planning A strategy for business owners to transfer ownership to employees through a tax-advantaged stock plan, improving succession planning and employee incentives. | Qualified Business Income Deduction A tax incentive allowing eligible business owners to deduct up to 20% of their qualified business income, reducing taxable income. |
*Self-Financed Insurance A strategy where individuals or businesses fund their own life insurance policies using structured loans or internal financing. | *SLATs An irrevocable trust allowing one spouse to benefit while keeping assets outside the taxable estate, preserving wealth for future generations. | *Succession Planning Strategies for smoothly transitioning business ownership and leadership while maximizing value and minimizing tax burdens. | Modern Qualified Plans Advanced retirement plans designed for business owners and employees, incorporating flexible contribution structures, tax benefits, and investment options. | Overfunded Qualified Plans Retirement plans with excess contributions that can be leveraged for additional tax-deferred growth, risk management, or future tax-efficient withdrawals. | Profit Sharing A retirement plan feature that allows businesses to distribute a portion of their profits to employees’ retirement accounts, providing tax benefits and employee incentives. |
Walton GRAT A Grantor Retained Annuity Trust (GRAT) structured to minimize gift tax impact while transferring appreciating assets to heirs efficiently. | *Deferred Compensation A plan that allows employees or executives to postpone receiving a portion of their income until a later date, often to reduce current tax liability and enhance retirement benefits. This non qualified. | ILIT A trust designed to hold life insurance policies outside of an estate, reducing estate taxes while providing liquidity for heirs. | Pension Optimization Plan A strategy for maximizing pension benefits while coordinating with other retirement assets to enhance income security and tax efficiency. | Pension Rescue A financial strategy that repurposes underperforming pension assets into more tax-efficient vehicles, such as life insurance, to better serve estate and legacy goals. |
Balloon CLAT
A Charitable Lead Annuity Trust (CLAT) with payments that start low and have one large payment at the end, maximizing tax benefits while supporting charitable causes. The balloon CLAT can pass a large benefit to the family free of estate and gift tax free.
Bargain Sales
Sell assets to a charity at a reduced price, receiving immediate cash while securing tax advantages and supporting a cause you care about.
Charitable Gift Annuities
A donation-based contract where you provide a gift to a charity in exchange for fixed lifetime income and potential tax benefits.
*Charitable Lead Trusts
A trust that provides income to a charity for a set period (Or a lifetime), with the remaining assets passing to beneficiaries or reverting to the donor, offering immediate income tax savings.
*Charitable Life Estate
Donation of a principal residence, usually while retaining lifetime use, securing an immediate tax deduction while ensuring a future gift to charity.
*Charitable Remainder Trust
A trust that pays income to you or others for life or a set term, with the remainder going to charity, usually to defer long term capital gains on an appreciated asset and estate planning advantages.
Leveraged Gifting Options
Advanced strategies that amplify the impact of charitable gifts using tax-efficient financial tools and asset transfers.
Donor Advised Fund
A flexible charitable giving account that allows you to make tax-deductible contributions, grow funds tax-free, and recommend grants to charities over time.
FLIPCRUT
A Charitable Remainder Unitrust (CRUT) that "flips" from net income to standard payout upon a triggering event, ideal for gifting illiquid assets.
IGNIT Plan(TM)
This is a multi-generational Pooled Income Fund.
Private Foundations
A personalized charitable entity that enables ongoing philanthropy, tax benefits, and control over grantmaking and investment decisions.
NIMCRUT
A Charitable Remainder Unitrust that pays beneficiaries the trust’s net income, with the option to make up for lower payments in high-earning years.
Preferred PIF(TM)
A specialized Pooled Income Fund (PIF) offering enhanced payout structures and tax advantages for charitable giving.
TCLAT
A CLAT created at death through a will or trust that allows the donor to zero out estate taxes while supporting charitable causes after death while ultimately transferring assets to heirs free of estate tax.
Young PIF
A pooled income fund that is less than three years old and therefore uses a federally published rate to determine the charitable income tax deduction.
*Assurance Ally Advisors can manage and implement these strategies in house.
Tax Planning as a Growth Strategy
Incorporating tax planning into your services positions you as a forward-thinking advisor who truly prioritizes client success. Assurance Ally’s collaborative model ensures you have the expertise, tools, and support to make tax planning a seamless part of your practice, ultimately helping you build stronger relationships, boost your revenue, and stand out in the competitive landscape.
Let Assurance Ally help you transform your practice and elevate your
role as a trusted financial partner.