Financial Planning
Annotated diagram of Schedule DTax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
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Financial Planning - Estate Planning

Financial Planning › Estate Planning


Estate Tax Planning For Large Company Stock Holdings: Four Tips For Using Record-High Lifetime Exemptions This is premium content

Due to annual inflation-indexing, the historically high lifetime exemption amount for gift, estate, and generation-skipping transfer taxes increased in 2023. High-net-worth people who have not yet made gifts, such as gifts of company shares, to use their lifetime exemption may wish to think about lifetime gift strategies to execute this year. This article, by an attorney with extensive experience in estate planning, discusses ideas to consider.

Charitable Remainder Trusts (CRTs) And Your Company Stock (Part 1) This is premium content

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.

Donating Your Company Stock To Charities And Private Foundations (Part 1) This is premium content

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.
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Gifts: Save On Estate Taxes With Transferable Stock Options This is premium content

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.

Charitable Remainder Trusts (CRTs) And Your Company Stock (Part 2) This is premium content

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.

Charitable Remainder Trusts (CRTs) And Your Company Stock (Part 3) This is premium content

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.

Donating Your Company Stock To Charities And Private Foundations (Part 2) This is premium content

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.

Retirement Planning With Your Stock Options And Other Stock Compensation (Part 3: Post-Retirement Planning) This is premium content

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.

The Use Of GRATs With Company Stock To Reduce Taxes This is premium content

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.


Can I name a beneficiary for my stock options, ESPPs, stock appreciation rights, or restricted stock? This is premium content

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...

How would my stock options be valued and taxed for estate-tax purposes upon my death? This is premium content

Unvested options are not taxed or included in your estate. The value of any vested but unexercised stock options would be...
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What is the tax treatment for gifts of company stock? This is premium content

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...

Can stock options and restricted stock be transferred or gifted to people or charities after I get them? This is premium content

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...

If I gift my company stock to a grantor-retained annuity trust (GRAT), do the securities laws still apply? This is premium content

When you are the trustee of a grantor-retained annuity trust (GRAT), and the beneficiary during the annuity payment period, the securities law prohibition on insider trading...

Can I transfer or pledge restricted stock before vesting? This is premium content

Most stock plans do not permit this for restricted stock or stock options. Lenders would also not accept restricted stock as collateral because...

Can I put NQSOs or company stock into a charitable remainder trust or a grantor-retained annuity trust? This is premium content

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...

What would happen to my AMT credit at death, or to an AMT credit created by my estate? This is premium content

Some experts take the position that an AMT credit transfer, at least in a community property state...

Can I sell my options to a family trust or a family partnership to defer taxes? Are there other strategies to defer the gain on nonqualified stock options other than the deferred delivery of the shares? This is premium content

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...

Can I sell my company stock through a blind trust, or another type of trust, as a defense against insider trading? This is premium content

Using a blind trust goes beyond the protections of Rule 10b5-1 plans, yet has more restrictions. These are irrevocable grantor trusts with...

Can ISOs be transferred to a grantor trust? This is premium content

The final rules for ISOs that the IRS issued on August 2, 2004, permit...

Why would I transfer stock options or restricted stock units to a living trust? What is the tax impact? This is premium content

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...
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