In the course of my practice, I often run into situations like this: Robert and his wife have a net worth of $20 million, of which $15 million is an interest in a family business. Their heirs include children, grandchildren and great-grandchildren. If upon the death of the surviving spouse they leave everything to their children outright, the family business and any unspent assets may again be exposed to estate taxation at their childrenâs demise. The assets will also be exposed to dilution if their children divorce.
Robert wants to protect his assets from successive estate taxation in multiple generations and the effect of a childâs divorce on his transmitted wealth. He would consider transferring stock in trust. However, Robert is not interested in surrendering control of the company at this point.