The tool will work for corporations where it can yield higher dividends, given the higher tax rates that corporations pay. 35% vs 15%

Let’s say years ago the corporation bought a piece of dirt or a local stock for a million dollars that now is worth some 20 -25 million. You figure the tax on the gain at 35%!

But instead it transfers the asset to a business asset sale trust which upon the sale saves the corporation some 7 - 8 million in taxes. And provides a two million dollar charitable deduction - Remember if it is an S or LLC the tax deduction passes to the stockholder - Plus the corporation would receive income payments for twenty years and then the remainder could transfer to a CSO which would support the corporate foundation.

Then by using part of the income to fund a key man policy the total asset would be regained on a tax free basis. For more info call Bert at 800 808-4020 or e mail him bert@taxstrategy.com