Sales of Interests in Family or Private Companies to Irrevocable "Grantor" Trusts

Would you like to mitigate the effect of estate taxes on your business interests? We frequently suggest making sales of interests ("Sale") to irrevocable "grantor" trusts for the benefit of younger family members. The Sale will freeze the value of the equity interest in the hands of the parent generation at today's value, while allowing most of the post-transfer appreciation to pass free of gift and estate taxes to younger generations. If (or more hopefully "when") the sold interest appreciates after the Sale, that appreciation will be removed from the transferor's estate for estate tax purposes.

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