Case study: Saving tax on the transfer assets.
The case for using specialist expertise.
As a senior executive in a publicly-listed company, Elizabeth has a large proportion of her wealth tied up in shares of her employer. While the company’s future looked secure, she wanted to release some of these assets to help her children and to diversify her risk, but also wanted to participate in the growth potential of the stock.
Affinity Private worked closely with Elizabeth’s accountant to identify a parcel of shares that could be sold to create the best tax position. We then engaged the necessary expertise to write call options on these shares to generate additional income as Elizabeth waited for the stock to reach her sale price target.
Over the life of the call options strategy, Elizabeth generated several hundred thousand dollars in option premium. This additional income allowed her to invest in property that would act as a nest egg for her 3 children. By deferring the sale of the underlying stock, the strategy also increased tax effectiveness, further securing Elizabeth's financial independence.