Bifalgorithm post

And that's how rich people avoid paying 1 million dollars in taxes. Rich person creates a trust where he, his spouse and his children are beneficiaries of the trust. The rich person then creates a corporation, but he does not own it directly. Instead, the trust has the ownership. He then runs a business through this corporation and grows it to a 4 million dollar valuation. This growth, by the way, is not taxable because it is unrealized capital gains. He then decides to sell this corporation to a third party for $4 million. However, instead of the trust paying tax on the capital gains, the trust can use the lifetime capital gains exemption of beneficiaries. The lifetime capital gains exemption allows individuals to pay zero taxes on the first $1 million of capital gains. Since there are four beneficiaries, this exemption can be multiplied by four.

And that's how rich people avoid paying 1 million dollars in taxes. Rich person creates a trust where he, his spouse and his children are beneficiaries of the…