Introducing the GOAT Trust

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June 21, 2023

Introducing the GOAT Trust

Founder Focus Alert

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The menu of tax planning options for founders includes many strategies designed to minimize income taxes upon liquidity events and to provide for wealth preservation across multiple generations. To achieve those benefits, these strategies most often require the founder to make a gift of equity to trusts that benefit others, including a spouse, children, parents or siblings.

We are often asked whether there is a strategy where the founder can enjoy the benefits of a trust without sacrificing the founder's own access to the wealth created when stock is sold. In certain situations, we are able to structure a trust that can meet this objective. Given its extraordinary benefits, and the fact that tax planners love acronyms, we have nicknamed it the GOAT Trust. While it may indeed be the Tom Brady of trusts, in this case the acronym stands for Gift Optimized to Alleviate Taxes.

To continue reading our alert on this topic, please click here.

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