Burrell has been moving company stock.
Gary Burrell created a successful business.
This local business has helped many individuals find their way.
[In fact, the international corporate headquarters is located only a few minutes away from where I am typing this.]
When it came to estate planning, Gary and his wife worked to set a successful route for his family.
According to a recent article in The Kansas City Business Journal titled “Founder's son moves more than $19M in Garmin stock,” this plan included Grantor Annuity Trusts.
What is a Grantor Annuity Trusts?
In other words ...
This technique works best when assets placed in the trust appreciate quickly.
If there is more appreciation on the assets in the trust, then there is a greater likelihood of wealth passing to beneficiaries without being subject to estate or gift taxes.
Once the annuity ends, the remaining assets could be distributed free of estate tax.
What if the annuity creator does not survive the annuity term?
The assets would be subject to an estate tax.
Recently, the son of Gary—Jonathan Burrell—moved about $19.83 million in stock shares from these grantor annuity trusts (GRATs).
He is the second largest beneficial owner of Garmin stock.
He is also of trustee of several of his family's trusts.
According to an SEC filing, more than 10 million of the shares were in the GRATS established by his mother, Judith Burrell.
Other shares were in annuity trusts for charity.
The charities are undisclosed, but Gary has donated large sums.
Although one must be careful about moving stock in a company, Grantor Annuity Trusts can be a beneficial estate planning tool.
Work with an experienced estate planning to determine whether this is a viable tool for you.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Kansas City Business Journal (September 25, 2017) “Founder's son moves more than $19M in Garmin stock”