Transfer of business interests to zero-tax state

2023

A client owned a business located in a high-income-tax state. He was preparing for a sale in the coming years. 

Our team of attorneys and accountants designed a strategy to gift the business assets to non-grantor trusts in Nevada and South Dakota.

This was done as a completed gift, using the client's estate tax exemption amount.

We used professional trust companies to act as trustee, which moves situs of the asset to the new state. When the sale of the asset is completed as a stock sale (of LLC interests, in this case), the sale is deemed to have taken place in the zero-income tax state.

This will mitigate the client's income tax, resulting in a projected, estimated $10 million dollars of savings.

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