Question: Grace Grubbs, your 76-year-old client, has the following objectives: Shifting some of the future appreciation in her portfolio of marketable securities to other members of

Grace Grubbs, your 76-year-old client, has the following objectives:

  • Shifting some of the future appreciation in her portfolio of marketable securities to other members of her family
  • Spreading income from the portfolio among her family without any preferential rights to income
  • Maintaining control over the entire portfolio for her lifetime
  • Reducing the size of her gross estate

Grace is considering several techniques. Which one of the following would be most appropriate for accomplishing Grace's objectives?

A)

An installment sale

B)

A 20-year GRUT (grantor retained unitrust)

C)

A subchapter S corporation in which she retains most of the shares and distributes the remaining shares to family members

D)

A regular (C) corporation in which she retains all of the voting shares, and distributes nonvoting shares to family members

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