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Leveraging Stock to Transfer Wealth


A family matriarch wanted to transfer most of her wealth to heirs during her lifetime. Grantor-retained annuity trusts (GRATs) were the logical option. The challenge was that the majority of her wealth was locked into significant and concentrated stock holdings.


Her Abbot Downing team created an elegant solution. The woman’s stock was used to fund GRATs, with stock appreciation converted to cash through loan proceeds substitution.


This strategy was conceived and initiated in a few short weeks. Over time she moved $25 million to heirs, tax-free, and she was able to hold onto her stock.


These materials are provided for general education and illustration purposes only. They were prepared by Abbot Downing and have been obtained or derived from information we consider reliable, but we cannot guarantee their accuracy or completeness. Abbot Downing does not undertake to advise you of any change in the information contained in these materials.

Wells Fargo & Company and its affiliates do not provide legal advice. Please consult your legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of you own situation at the time your taxes are prepared.