Case Study: Private Equity Exec's Distributions & Taxes Simplified

A straightforward plan that coordinates distributions, taxes, investments, trusts and estate, and giving.

ELLEN'S STORY

Ellen is a VP at a private-equity firm in Boston and her husband works in healthcare. Ellen's distributions arrived in bursts, then went quiet. They kept asking: If a distribution hits, what’s the split among spending, saving, investing and charitable giving? Do we need to make estimated payments? Is our estate plan sufficient under Massachusetts’ $2M threshold? 

When they came to Sachetta, we talked about their life goals and then set a standing routine: decide the split in advance, set aside tax money and schedule estimated payments when needed (updated when the K-1 reports income/capital gains), refresh estate documents/titling, and add a once-a-year charitable gift timed to distributions. Funds routed on arrival, tax time stayed orderly, and the plan refreshed through the year.

 
Conversation about a coordinated private equity distribution and tax plan with her husband in the woods.

ELLEN'S PLAN

We focused on four key areas to simplify decisions and bring peace of mind as her distributions arrived.

Financial Planning: We set a standing split for how each distribution would be divided between spending, saving, investing, and giving—aligned with their short- and long-term goals.

Tax Strategy and Preparation: We set aside tax funds from each distribution and scheduled estimated payments as needed, updating when K-1s reported income and capital gains. Each year taxes are filed without stress. 

Investment Coordination: We helped map out how new funds would fit into their broader portfolio, ensuring each decision supported their long-term goals.

Charitable Giving: Ellen's charitable giving is focused on the nonprofit where she's a board member. When possible, she gave appreciated stock instead of cash. We also timed larger gifts to years with big K-1 income or capital gains so the deduction offset more taxable income.

Estate and Insurance Planning: Refresh trust and estate documents; retitle accounts and confirm beneficiary designations; review insurance coverage; plan for liquidity since the estate exceeds the Massachusetts’ $2M threshold.

ACTIONS IN THE FIRST 90 DAYS

In the first 90 days, we put the plan into motion and built simple routines so money moved with purpose, decisions felt easier, and the details stayed organized.

  • Confirmed the standing split for each distribution; set automatic transfers on deposit.
  • Scheduled estimated payments and adjust when K-1s report income and gains.
  • Introduced Ellen and her husband to an estate planning attorney who refreshed their estate documents and account titling with Massachusetts’ $2M threshold in mind. 
  • Scheduled an annual charitable gift.

RESULTS

Ellen and her husband now have a financial framework and a team that stays with them. As life and deals evolve—new funds, shifting taxes, liquidity events, or family milestones—we keep the plan current, handle the coordination, and help them decide the next right step.

WHAT'S YOUR STORY?

If this story feels familiar, a coordinated plan would likely focus on similar priorities: 

  • A household funding system that pre-allocates each distribution.

  • A predictable tax plan.

  • Estate and insurance planning tailored to Massachusetts’ $2M estate tax threshold.

  • An intentional giving cadence.
Woman reading in a hammock; Reviewing estate documents with Massachusetts’ $2M estate tax threshold in mind

 

 

 

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Couple walking and talking about K-1 tax planning with set-aside funds and scheduled estimated payments.

Behind every financial plan is a real life—full of deadlines, family goals, and important decisions. This story reflects the kinds of challenges our clients bring to us, and how we build calm, clear strategies in response. While this story is fictional, the strategies are true to life.

Disclaimer: Action plans and results are shown for illustrative purposes only, are not indicative of any specific Sachetta client, and will vary based on each client’s individual circumstances and objectives.

Last updated September 9, 2025.