A fascinating way to build value in younger generations is to allow the younger generations (or trusts for them) to take advantage of business opportunities, using the parent’s business knowledge and acumen. For example, a business owner-parent might have an idea for opening a new location or opening a new line of services or products. The parent might create a trust and allow the trust to open the new business or to acquire a large non-voting interest in the new business. Or the parent might assist the trust in acquiring financing to build a building or purchase equipment and lease the building or equipment to the business. The children would be able to benefit from the parent’s knowledge without any transfer of property ever taking place.
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