Advanced Tax Strategies to Uncover Hidden Wealth in 2025

As we are already one month into 2025, it’s the perfect time to not just review tax strategies but to uncover hidden opportunities that can significantly benefit your clients. At Camas, we work alongside advisors to implement sophisticated tax and estate planning tools that don't just save money—they find it. Here’s how you can elevate your client engagements with advanced concepts designed to maximize wealth and minimize tax exposure.

1. The Power of 831(b) Captive Insurance Companies

For business-owning clients with unmanaged risks, 831(b) captive insurance companies present a unique opportunity. This strategy allows businesses to self-insure for specific risks while benefiting from favorable tax treatment. Premiums paid to the captive are tax-deductible to the operating business, and the captive itself enjoys tax advantages on its income. This approach not only reduces tax liability but also enhances risk management—a win-win for your clients.

2. Restricted Executive Bonus Plans (REBP) for Key Employee Retention

Retaining top talent is crucial for business continuity. Restricted Executive Bonus Plans (REBP) allow business owners to provide valuable benefits to key employees while maintaining control over the funds. Unlike traditional bonus plans, REBPs include restrictions that incentivize long-term retention, ensuring key executives remain committed. Plus, the contributions are often tax-deductible to the business, offering a strategic tax advantage.

3. Sophisticated Charitable Estate Planning

Philanthropic goals can align seamlessly with tax-efficient estate planning. By incorporating charitable remainder trusts (CRTs), donor-advised funds (DAFs), and other giving vehicles, clients can reduce estate taxes, receive income tax deductions, and support causes they care about. This approach not only fulfills charitable intentions but also creates a lasting legacy while optimizing tax outcomes.

4. Irrevocable Life Insurance Trusts (ILITs) with SLAT Provisions

Life insurance isn’t just about protection; it’s a powerful estate planning tool. Irrevocable Life Insurance Trusts (ILITs) help remove life insurance proceeds from the taxable estate, providing liquidity for estate taxes and wealth transfer. When combined with Spousal Lifetime Access Trusts (SLATs), clients can retain indirect access to funds while securing significant tax advantages. This dynamic duo is especially effective for high-net-worth families seeking to preserve wealth across generations.

5. Finding Hidden Money Through Tax Return Analysis

A deep dive into clients’ tax returns can reveal overlooked opportunities. Whether it’s identifying self-employment tax issues within partnership returns, accelerating depreciation through cost segregation, or spotting gaps in retirement plan contributions, tax returns are a goldmine of actionable insights. By reviewing at least two years of business and personal tax returns, you can uncover inefficiencies and recommend strategies that free up cash flow for better investments.

Bringing It All Together

Advanced planning isn’t just about complex strategies; it’s about holistic understanding. Gathering comprehensive data—financial statements, tax returns, business structures—allows you to tailor solutions that align with your clients’ goals. At Camas, we assist advisors like you in implementing these sophisticated tools, ensuring your clients benefit from cutting-edge tax and estate planning strategies.

As we are already one month into 2025, let’s not just plan—let’s uncover, optimize, and transform your clients’ financial futures. Ready to explore these strategies further? Reach out today and let’s elevate your advisory practice together.

For more information on what Camas can provide for you, reach out to our Advisor Relations, Jim Carpenter, at [email protected]. Also, feel free to join our weekly 1-hour training call every Wednesday at 9 AM Pacific Time click here to register ? Coaching Registrations