Subchapter S Stock in Trust Special Considerations

April 13, 2005 Published Work
Estates & Probate Commentary, Connecticut Bar Association, Feb. 2005

Trusts can be an effective component of the wealth transfer strategy of closely held business owners. Transfers of corporate shares to a properly structured trust can enable the owner to reduce the number of shares includible in his or her estate (along with the future appreciation on those shares) while shifting income among family members. In addition, the valuation of such shares for transfer tax purposes often takes into account lack of marketability and/or minority interest valuation discounts.