2626 Cole Ave., Suite 300 Dallas, TX 75204

Wealth Accumulation

Onyx Capital Management LLC (hereinafter “Onyx”) advises high net worth and ultra-high net worth families and individuals on tax efficient and wealth building strategies.

The Wealth Accumulation Trust Enhancement Returnssm is a wealth protection strategy (hereinafter “WATERsm”) that Onyx represents alongside WATER Structures, LLC (“WSL”).

The WATER wealth protection strategy can be used for assets newly purchased or already owned, and for liquidation events that are contemplated or in process. WATER builds wealth on a tax-free basis, allows for distributions that are both taxable and tax-free (from Federal and most States Income Tax) while keeping all of the assets in the Pool of WATER. Additionally, in general, the Water strategy is exempt from creditor claims. The core element of the WATER strategy, we believe, has more than 100 implemented plans to date.

WATER’s stated minimum contribution is $20 million USD and there is no limit on the maximum amount of contribution or number of contributions. All Plan assets of cash and securities can be held at the financial institution(s) of choice of each Client. At all times the Client has the freedom to exert control (buy, hold, or sell) over the assets inside their Pool of WATER. The types of assets that can be used inside the WATER strategy include but are not limited to real estate, publicly traded stock, interests in privately-held companies, art and other collectibles, private equity and hedge fund interests, notes, proceeds from the sale of an ESOP (with a deferred tax under IRC section 1042) and cash.

The Client’s assets inside WATER can be distributed to the client in three ways. First, an Initial Lump Sum Distribution (“ILSD”) can be made up to 30% of the value of the Client’s WATER assets at any time after the Client reaches age 50.  Second, a Client may choose at any time between the age of 50 and 75 (and a client must at 75) take Annual Periodic Payments (“APP”) which are annual distributions/payments to the client that are fully taxable. Therefore, these payments are generally set up to minimize the potential tax obligation of the client but can be as much as the client desires for consumption purposes. These payments are established by the client and an actuarial determination based on the Client’s needs.  APP payments must start once a Client elects an ILSD distribution.  The third distribution option to the Client is an Additional Lump Sum Distribution (“ALSD”) which can be elected 37 months after the ILSD distribution. The amount of the ALSD can be up to 50% of the asset value of Client’s WATER with tax treatment like ILSD payments.

The Pool of WATER value of assets is openly reported under all accounting, tax, and legal regulations within the United States along with the Clients’ other US annual income tax reporting. Each client also has the comfort of a legal opinion letter from one of our curated internationally renowned law firms and all tax, compliance and regulatory accounting and reporting is provided under each Client’s Pension Services Agreement.  The Trustee conducts an annual audit of all transactions of contribution, distribution, and investment activities as well. Ongoing maintenance of all the entities and accounts as well as ongoing strategic advice and professional consultation are all included as part of the WATER offering.

Given the current tax environment on both the federal and the state level and the current discussions around increasing taxes on the wealthy and the closing or limitations of many potential tax savings regulations, WATER is a strategy for those high net worth and ultra-high net worth individuals and families that want to accumulate greater and more rapid wealth within a strategy that concurrently protects the assets from the claims of creditors.

Onyx Capital Management is available to provide more details and formally present the WATER strategy. Give us a call 800-496-8350 or email one of the managing partners at robert.finley@onyxcm.com or scott.hartman@onyxcm.com.