In this example, a client transfers $4M of private equity to a Spousal Lifetime Access Trust but uses only $2.4M of his estate tax exemption (the amount you can pass estate tax free to your heirs) to make this gift. The result: an immediate estate tax savings of ~$640K.

But there’s more to it. And Vernon (aka Vernonator) chimes in at the end to add more context on the long-term benefit of this play.

Of course, every strategy comes with tradeoffs, so this is by no means a recommendation. But it can make sense for the right fit.

Enjoy!

Disclaimer: For information purposes only and should not be interpreted as legal, tax or financial advice. Always consult your CPA/tax advisor/attorney (or reach out to us;) to discuss your specific situation. Past performance is no guarantee of future results.