A concentrated stock position can be both a point of pride and a source of sleepless nights. If a single stock makes up a big portion of your portfolio, you’re carrying excess risk—often without even realizing it.
Sterling Capital Gains Solutions helps investors reduce risk, avoid capital gains tax, and create a legacy with purpose.
Diversify Without Selling. Secure Your Future Without the Tax Hit.
From company stock grants to long-held investments in a winning stock, many investors hold concentrated positions in names like Apple, Amazon, or Microsoft. But history has shown—even great companies can stumble.
Through our proprietary Stock Diversification Trust, you can:
- Sell your concentrated stock without capital gains tax
- Defer taxes indefinitely, across generations
- Reinvest in a diversified portfolio
- Receive optional lifetime income
- Maintain flexibility, control, and peace of mind
Real Results Case Study: Stan and Betty’s $12M in Apple Stock—and a $3.48M Tax Time Bomb
Stan (65) and Betty (62) had held Apple stock for decades. Now worth $12 million, it made up 60% of their net worth but came with a tiny $400,000 cost basis—and a massive $3.48 million tax liability if they sold.
This strategy gave us flexibility, income, and peace of mind—without handing 30% to the IRS.– Stan and Betty
They had three main goals:
- Reduce investment risk
- Avoid capital gains taxes
- Create flexible, long-term wealth for their children
Here’s what we did: Stan and Betty first created a Master LLC and contributed their Apple stock to it. They then established two tax-exempt Stock Diversification Trusts—one for each child—and funded each trust with half of the LLC ownership. The Apple stock was sold inside the LLC, triggering no capital gains tax, and the proceeds were reinvested into a fully diversified portfolio. The structure provided optional income streams for Stan and Betty during their lifetimes, and eventually for their children, while also delivering an immediate income tax deduction of approximately $800,000.
- Tax saved: $3.48 million
- Long-term income: Over twice as much after-tax spendable income
- Risk: Dramatically reduced
- Legacy: Protected and passed on, tax-efficiently