Question
Lyla at age 56 has an aggressive-growth stock portfolio valued at $6 million. Lyla would like to remove this portfolio and its future appreciation from
Lyla at age 56 has an aggressive-growth stock portfolio valued at $6 million. Lyla would like to remove this portfolio and its future appreciation from her gross estate and from her probate estate. She would like to gift the portfolio to her two daughters, but she is reluctant to do so because she wants some income for the next nine years that might provide her with a hedge against inflation. Lyla has made many taxable gifts to her children in the past and she is concerned about the amount of gift tax she would have to pay if she gifted the portfolio outright to her daughters today. What planning technique will meet Lylas objectives?
- A charitable remainder unitrust
- A grantor retained unitrust
- A grantor retained income trust
- A charitable lead unitrust
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