Lance Wallach
As
I discuss in my Estates and Trusts book the Facebook insiders are using a GRAT
to avoid estate and gift taxes. A grantor retained annuity trust is a legal
way, if done properly, to avoid taxes. The strategy is a great way to shift
wealth to others at almost no tax cost. GRATS are a way for the rich to avoid
estate and other taxes. These trusts, which are easy to structure, transfer
asset appreciation from one taxpayer to others almost tax-free. The benefits
are huge. To be done successfully this strategy must use realistic appraisal
feels. A valuation must be done in an unbiased way. Business Valuations can be
a key to this strategy. Over the life of the trust the person who set it up
gets payments plus a return. The result is usually no gift or estate tax on the
appreciation of the asset. This is true even though the asset had been
transferred.
Be
sure that whoever sets this up knows what he is doing. A realistic business
valuation is a must, or a valuation of the asset.
Lance Wallach, National Society of
Accountants Speaker of the Year and member of the American Institute of CPAs
faculty of teaching professionals, is a frequent speaker on retirement plans,
financial and estate planning, and abusive tax shelters. He speaks at more than ten conventions
annually and writes for over fifty publications. Lance has written numerous
books including Protecting Clients from Fraud, Incompetence and Scams
published by John Wiley and Sons, Bisk Education's CPA's Guide to Life
Insurance and Federal Estate and Gift Taxation, as well as AICPA
best-selling books, including Avoiding Circular 230 Malpractice Traps and
Common Abusive Small Business Hot Spots. He does expert witness testimony
and has never lost a case. Mr. Wallach may be reached at 516/938.5007,
wallachinc@gmail.com, or at www.taxaudit419.com or www.lancewallach.com.
The information provided herein is not intended as legal,
accounting, financial or any type of advice for any specific individual or
other entity. You should contact an appropriate professional for any such
advice.
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