Wealth Management of the Affluent

Mark A., Miller
October 2000
Journal of Financial Planning;Oct2000, Vol. 13 Issue 10, p108
Academic Journal
This article evaluates how affluent executives and directors of publicly traded companies are managing their wealth. It was shown that irrevocable trusts funded with pre-initial public offering shares can offer estate tax and generation-skipping tax savings. The grantor retained annuity trust (GRAT) is popular among affluent executives and directors. Caution should be exercised if the stock funded into the GRAT is mature company stock. The split-dollar irrevocable life insurance trust combination is an attractive method for executives to provide liquidity to their estate. Income tax is payable by the executive during lifetime on the economic value of the insurance protection. Family limited partnerships are used as an alternative to irrevocable trust gifting, and have also been vehicles to transfer value in assets that are likely to appreciate considerably.


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