If he sells, he will have to pay taxes on a gain of $11.75 million.
Instead, he puts it into a trust.
Takes secured loans.
Loans are not income.
So there are no taxes.
They are not taxed.
He lives off loans.
Never sells.
Dies holding the asset.
His children inherit a base amount of $12 million.
Tax authorities get $0.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Dad buys stocks for $250,000.
It grows to $12 million.
If he sells, he will have to pay taxes on a gain of $11.75 million.
Instead, he puts it into a trust.
Takes secured loans.
Loans are not income.
So there are no taxes.
They are not taxed.
He lives off loans.
Never sells.
Dies holding the asset.
His children inherit a base amount of $12 million.
Tax authorities get $0.