Case Study: $4.1M Exit. $600K+ Tax Saved. Plan Locked for 30 Years.

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Client profile: U.S. citizen, long-term Vietnam resident, minority shareholder in a manufacturing company

A client sold a business in Vietnam for $4.1 million

As a U.S. citizen, he was looking at a 30.8% effective tax rate, including NIIT. That’s over $1.2 million on the table.

We moved fast.

First, we changed his state domicile. That alone saved him $287,000 in state capital gains tax.

Next, we cleaned up his Foreign Tax Credit position. We gathered and structured 10 years of Vietnam tax records. That reduced his U.S. exposure line by line.

He also had plans to support education initiatives in Vietnam. We used a Donor Advised Fund to give him full flexibility and secure a $143,000 deduction up front.

That’s over $600,000 in real tax savings before a dollar was spent.

He had also just lost his income stream. No salary, no dividends, just a large number sitting in an account that could shrink fast without a plan.

He needed $200,000 a year to fund his lifestyle, family travel, and giving

We set up a drawdown model that worked.

  • Global equities for long-term growth
  • 3 years worth of income in cash and bonds for stability
  • REITs & gold for liquidity and inflation resistance

Withdrawals were dynamic. In strong years, he drew a bit more. In weaker years, he adjusted. No rigid rules. No forced selling.

We planned across currencies too. VND for local spending. USD for investments and U.S. obligations. SGD as a buffer. No FX surprises, no last-minute transfers.

Once income and liquidity were locked in, we turned to legacy and asset protection

We used a non-grantor trust to shield a portion of his wealth. This wasn’t about “estate planning” for someday. It was about removing exposure today, and giving his beneficiaries clarity tomorrow.

His remaining U.S. assets, including the family farm, went into a revocable trust. That avoided probate and cross-border confusion. His kids won’t be flying across time zones to sort out paperwork.

He had done the hard work building the business. This stopped him from watching it get picked apart after the fact.

If you’re thinking about selling a business, and you haven’t mapped out your tax, income, and legacy strategy - you’re exposed.

This client saved over $600,000 in tax before making his first investment decision.

If you’re about to exit and want it done properly, globally, and with no loose ends - book a confidential consultation.

Frequently Asked Questions

What’s the most common tax mistake expats make when selling a business?

Failing to plan before the sale. U.S. citizens are taxed on worldwide income. If you wait until after the deal closes, you’re already behind.

How did you save $287,000 by changing state residency?

We moved the client’s U.S. tax domicile to a no-capital-gains state before filing. It was legal, strategic, and avoided state-level tax entirely.

Can I avoid paying U.S. tax if I already paid in Vietnam or another country?

Not automatically. But with proper use of Foreign Tax Credits, Foreign Earned Income Exclusion, and clean documentation, you can reduce or eliminate double taxation.

What is a Donor Advised Fund and why would an expat use one?

A DAF lets you lock in a U.S. tax deduction now, and give to causes later. It’s efficient, flexible, and ideal for expats who want structured giving without setting up a foundation.

What’s the benefit of using a non-grantor trust in this case?

It protects legacy assets from lawsuits or disputes and simplifies inheritance across borders. It also keeps assets out of probate and reduces legal costs for heirs.

Do I need to live in Vietnam to use this kind of planning?

No. The approach works for any U.S. citizen with international ties, especially those living or doing business in Asia. Tax exposure and planning opportunities are location-dependent, but the strategy holds globally.

When should I talk to someone about planning a sale?

Before the deal closes. Ideally 3–6 months ahead. After that, you’re just cleaning up the damage.

We work with a select group of families, executives, and founders each year.

If you’ve already made it - and now want to make it count - we should talk.

We work quietly with a small number of families, founders, and executives each year to simplify complexity, protect what matters, and bring clarity to what comes next.

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