Q: Can I gift shares to my daughter for estate planning?
I just started a company (a Delaware C-corp). It is worth basically nothing at this point since it just got started. There are no investors so far, so I own most of the shares in the form of restricted stock that has been early-exercised. The shares will be vested over 4 years.
I have a daughter who's a minor. In case the shares will appreciate in value, I want to gift her some of the shares now when the value is low. How can I go about doing that?
A: One solution I have seen is to issue her non-voting shares. These will have 40% less value than a regular voting share because they have no control. That would allow you to give them to her at $25,000 per year without filing a gift tax return.
Nina Whitehurst agrees with this answer
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