Facebook and Estate Planning


Facebook and Estate Planning

By James F. McDonough, Jr. on May 18th, 2012

Facebook has grabbed the headlines, but behind the scenes key personnel have undertaken critical estate planning, proving that they are more than just technically savvy. Here’s how it worked.

The Wall Street Journal just reported that six of the insiders in Facebook established Grantor Retained Annuity Trusts (GRATs) last year. These trusts were established at a time when the estimated fair market value of the Initial Public Offering (IPO) was expected to be about $29 to $30 a share. Given that there are now reports that the IPO price may be significantly higher, this strategy would appear to be yielding an immediate benefit.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© James McDonough, Scarinci Hollenbeck | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.