One of the things that is great about America is that anything is possible. There are cynics out there who would suggest that the American dream is a myth, or that it is something that may have existed at one time but is no longer viable. However, the facts tell a different tale.
If you come up with the right idea at the right time, and execute it properly, the sky’s the limit. The phenomenon of Facebook is living proof. The founders of the company turned a relatively simple idea into an enormously profitable endeavor and the success is quite inspiring if you look at it the right away.
There is something else to take away from the Facebook story. It’s easy to join in the chorus of “tax the rich,” but what if you were the person who came up with a great idea that made you fabulously wealthy? Would you be anxious to hand over an enormous percentage of your wealth to the tax man?
Regardless of how you feel about it, there are ways to preserve your wealth with the benefit of legal assistance and one option is the zeroed out grantor retained annuity trust strategy (GRAT). According to Forbes, Facebook founders Mark Zuckerberg and Dustin Moskovitz used this approach to gain tax efficiency in light of the appreciable value of their shares in the company.
Indeed, funding a GRAT with appreciable securities can enable tax-free asset transfers under some circumstances. Should you be interested in learning more about them, don’t hesitate to pick up the phone to arrange for a consultation with a good Kansas City estate planning lawyer.
Author, President and Founding Attorney
Parman & Easterday