A gift can save estate tax and still cost your family more tax.

A gift can save estate tax and still cost your family more tax.

The built-in gain goes with the stock. If your heirs will sell soon after your death, losing the basis adjustment may cost more than the estate tax saved.

An equal-value swap with a properly structured grantor trust can bring low-basis stock back for a possible basis adjustment at death. It also brings the stock’s future growth back into your estate. Compare both taxes before choosing which assets to transfer.

Today's Daily Tax Planning Strategy compares gifting low-basis assets with retaining them and shows how a grantor-trust swap can fit.

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