News for hackers. Stuff that matters.

A comment on Patagonia founder gives away the company. Parent comment

Re:Patagonia founder gives away the company by kasey_junk on Thursday September 15, 2022 @08:14AM (#32850576)
Ah but you see, once you are ready for your estate to take the money you set up a granter retained annuity trust.

So long as you don’t die, and your trust earns more than the IRS theoretical rate you can pass on the money almost tax free. While still getting loans against it.

[ Parent | on HN ]
Re:Patagonia founder gives away the company by missedthecue on Thursday September 15, 2022 @11:16AM (#32853310)
If you put assets in a GRAT you can't borrow money against it
[ Parent | on HN ]
Re:Patagonia founder gives away the company by sokoloff on Thursday September 15, 2022 @11:45AM (#32853799)
This is correct; GP mis-typed the income angle. Instead of taking loans as typed, the grantor retains the right to receive an annuity stream over the trust's term.
[ Parent | on HN ]
Re:Patagonia founder gives away the company by kasey_junk on Thursday September 15, 2022 @03:11PM (#32857074)
Right. What I meant is you can get the loans against the balance before putting it into the trust and after the trust itself provides the income.
[ Parent | on HN ]