October 15, 2024 / Press
Robert Strauss Weighs in on Upstream Transfers and Tax Saving Strategies in Business Insider
Robert Strauss was recently featured in the Business Insider article, “How rich Americans can save on taxes by giving stock and real estate to their parents,” which delves into advantageous strategies for high-net-worth families including gifting and reselling assets and using upstream transfers to minimize taxes.
Upstream transfers, which occur when a child gifts stock to their parents and inherits it back upon the parents’ passing, allow the elite to use a tax loophole and ultimately save thousands in taxes. However, the strategy comes with risks.
“You’ve got to navigate the family dynamics to make sure that an upstream actually isn’t going to piss other people off or create an unrealistic expectation in an inheritance that’s not intended,” Rob tells Insider. Timing is also critical as one can risk changes in tax law and value during the waiting period. “Ideally, what you’re doing is you’re targeting the exemption amount and not less and not more, but the value of the asset will change and the exemption amount will change,” Rob explains, adding, “It makes it harder to deal with.”