Thursday, October 17, 2013
While Twitter’s elite were planning the firm’s upcoming IPO, they were also making some canny estate-planning moves.
Jack Dorsey, the company’s 36-year-old chairman, Evan Williams, the 41-year-old largest individual shareholder, and Richard Costolo, the 49-year-old Chief Executive recently made estate-planning moves that will save them a total of around $115 million in federal estate taxes (assuming an offering price of at least $28 a share).
Some of the techniques used by these Twitter insiders include grantor-retained annuity trusts, gift trusts, and single-member limited liability companies. These moves demonstrate how careful planning can greatly benefit the truly wealthy.
See Laura Saunders, How Twitter Insiders Cut Their Taxes, The Wall Street Journal, Oct. 11, 2013.