How The Trumps Held On to Generational Wealth | NYT News

How The Trumps Held On to Generational Wealth | NYT News
Grott trust designed pass wealth between Generations in 1995, Donald Trump and his siblings began to take ownership of most of their father’s real estate Empire, while avoiding hundreds of millions of dollars in Thai. They did so by creating two grantor retained. Annuity trust, also known as Graz. One for Dad and one for Mom taxes are paid based on the final value of the brat, and this gave the trumps every incentive to lowball the value of the assets. That’S exactly what they did take. For instance, the fountainbleau apartments in 1982, the trumps value 264 unit, complex 15.3 billion dollars, but for the purposes of the grott they said it was worth just 2.9 Million dollars. They then broke up the ownership of the apartments giving almost half to Mary Trump Fred Trump’s wife. This allowed them to call the IRS that Fred Trump, who would exercise iron-fisted control over every breath of his Empire for 70 years, was a minority owner with no real say over his buildings. This reduced the value of the Empire by additional 45 %, which dropped the fountain Blues value to just 1.6 million dollars, using the same aggressive techniques to Trump’s transferred nearly all of Fred Trump’s real estate holdings into the garage, including set shopping centers and more than 6,500 Apartment units the siblings, bought the assets with money from their father’s businesses and Mom and Dad gave them the rest when the grad transfer was completed in 1997 claim that those 6500 Apartments were worth just 41 million dollars. Eight years later, the same properties sold for more than 670 million dollars. Meeting the trumps avoided, paying hundreds of millions of dollars in taxes.
By Nov. 22, 1997, Donald Trump and his siblings owned nearly all of Fred Trump’s empire free and clear of estate taxes. How did they do it? A special type of trust with a clunky acronym: GRAT, short for grantor-retained annuity trust. GRATs are one of the tax code’s great gifts to the ultrawealthy. They let dynastic families like the Trumps pass wealth from one generation to the next — be it stocks, real estate, even art collections — without paying a dime of estate taxes.

Read the story here: https://nyti.ms/2xRO9vK
Subscribe: http://bit.ly/U8Ys7n
More from The New York Times Video: http://nytimes.com/video
———-
Whether it’s reporting on conflicts abroad and political divisions at home, or covering the latest style trends and scientific developments, New York Times video journalists provide a revealing and unforgettable view of the world. It’s all the news that’s fit to watch.

Leave a Reply

Your email address will not be published. Required fields are marked *