For owners thinking past the transaction.
When a business is worth a lot, a single trust rarely does the job. The right plan usually layers several structures, each matched to an asset, a family goal and a moment like a raise, a sale or a change in the tax law.
We design those layers around the business itself: who owns it, how it will be sold, and what the family wants the wealth to do afterward.
SLATs.
A SLAT moves assets out of your taxable estate using your lifetime gift exemption, while your spouse can still benefit from the trust. It's a common way for owners to use their exemption without giving up all access to the wealth.
GRATs.
With a GRAT, you transfer assets and receive an annuity back for a set term. If the assets grow faster than the IRS's assumed rate, the excess passes to your beneficiaries with little or no gift tax. It suits assets expected to rise in value, like shares ahead of a raise or sale.
IDGTs.
An IDGT is outside your estate for estate tax purposes but treated as yours for income tax. You can sell assets to it for a note, freezing their value in your estate, and paying the trust's income tax yourself lets more wealth build up inside it.
Dynasty trusts.
A dynasty trust is built to hold wealth for several generations, using your generation-skipping transfer tax exemption so the assets aren't taxed again as they pass to children and grandchildren.
Funding, valuation and governance.
A trust only works if it's funded properly and run with discipline. We coordinate the transfers, independent valuations for business interests, gift tax returns and the choice of trustees, so the structure holds up years later.
- Sequencing around a raise, sale or change in exemption
- Independent valuations for closely held shares
- Form 709 gift tax returns with adequate disclosure
- Trustee selection, succession and family governance
Trusts & Charitable: common questions
What is a dynasty trust?
A long-term trust designed to hold assets for children, grandchildren and later generations. Allocating your generation-skipping transfer tax exemption to it can keep the assets from being subject to estate tax at each generation.
SLAT or dynasty trust: which is better?
They do different jobs and are often used together. A SLAT keeps an indirect line of access through your spouse. A dynasty trust focuses on later generations. The right mix depends on your assets, your family and how much access you want to keep.
When should a business owner set up trusts?
Usually well before a raise or sale, when the business's value is lower. Transfers made then use less of your exemption, and more of the growth happens outside your estate.
Planning past the deal?
Tell us about the business, the family and what you want the wealth to do. We'll review it and get back to you.