Own all or part of a closely held business? Someday the succession plan buzzer will go off. You would like to see the value of your business — in dollars — in your personal bank account. Wouldn't it be nice if all of those dollars came to you tax free? No income tax, no capital gains tax.
Yes — it can be done, and legally too. With the IRS accepting the entire transaction. The strategy that makes the transfer tax-free is called an intentionally defective trust