Elyse G. Kirschner and Carlyn S. McCaffrey
NEW! The grantor-retained annuity trust (GRAT) is one of the best techniques currently available for transferring company stock or other investable assets to family members with little or no estate or gift tax cost. However, legislative changes recently proposed by the Obama administration would have an adverse impact. Learn about the GRAT technique before the tax rules change.
Joshua Husbands
The celebrated philanthropy of Warren Buffet has prompted much interest in contributing to charities. In this article series, learn about setting up a charitable foundation, donating company stock, and navigating the related issues of taxation and securities law. Part 1 emphasizes private foundations, direct stock gifts to charities and donor-advised funds, and the issues involved in transferring stock options or restricted stock.
Christopher Cline
The charitable remainder trust (CRT) is a mainstay of estate planning. Although designed for charitable giving, CRTs can play a role in financial planning for your stock grants.
Christopher Cline and Joshua Husbands
Restrictions can apply when you are funding a CRT with your company stock. These considerations dictate whether your strategy makes sense or is even possible.
Christopher Cline and Joshua Husbands
In this article we discuss the use of CRTs to diversify your company stock holdings, without immediate income tax liability, while you support an institution or cause you believe in.
Joshua Husbands
NEW! The celebrated philanthropy of Warren Buffet has prompted much interest in contributing to charities. In Part 2 of this article series, learn about the taxation and securities law associated with donations of company stock to charities and private foundations.
Susan Daley
After you die, taxes may be owed on the value of your property. One pillar of estate planning is to transfer assets that are likely to appreciate in value, such as stock options, out of your control long before you die.
Carol Cantrell
UPDATED FOR REVISED TAX LAW! Tax planning for retirees can be more challenging that it was during their working years. You need to constantly monitor any options and company stock holdings as part of your overall portfolio. Part 3 looks at special issues that can arise after you retire, including Social Security; coordinating with required minimum distributions for IRAs and your 401(k); moving to another state; and the gifting of stock.
Lewis Schiff
Investment Advisor
Low stock prices and low IRS 7520 interest rates present opportunities for reducing gift and estate taxes while transferring assets, including company stock, to heirs.
Deborah Jacobs
BusinessWeek
A Health & Education Exclusion Trust can pay university tuition for one or several generations and avoids problems with the generation-skipping transfer tax.
Raymond Fazzi
Financial Advisor
Financial advisors are telling clients not to expect estate tax to disappear. The drafting of wills and estate plans has changed in ways that are more subtle than dramatic. (Although not specific to stock compensation, this article is of interest to anyone with substantial net worth in company stock and options.)
Elaine Silver
BusinessWeek
Details on the whys and hows of family foundations, which can be gift-giving vehicles for your company stock.
Return to top of this page
You should read the terms of your stock plan and grant agreement. If the plan allows transfer upon death to beneficiaries, you should obtain the...
Most stock plans do not permit this for stock options or restricted stock during your life (i.e., transferable only at death), or they allow it only...
Most stock plans do not permit this for restricted stock or stock options. Lenders would also not accept restricted stock as collateral because...
Your estate-planning opportunities are more effective with company stock than with options. As a general rule, the contribution of the stock options themselves to a CRT is rather...
Some experts take the position that an AMT credit transfer, at least in a community property state...
It's similar to the tax treatment for any gifts of stock. You may make annual gifts to any number of recipient up to the specified annual amount without any tax impact. Financial advisors often tell clients with substantial stock holding to consider making...
Be very careful, as IRS actions and new rules have essentially shut down the use of these techniques. Before recent developments, some tax planners advised...
Using a blind trust goes beyond the protections of Rule 10b5-1 plans, yet has more restrictions. These are irrevocable grantor trusts with...
The final rules for ISOs that the IRS issued on August 2, 2004, permit...
Assuming your stock plan allows this and it did not allow you to name a beneficiary, transferring unexercised vested options to a living trust would...
It begins to run on the day after your death, which is when your employment is officially terminated...
Return to top of page
CFP® Credit
