What advisors and founder clients should know as regulators increase scrutiny of trust stacking strategies.
As more founders prepare for liquidity events, Qualified Small Business Stock (QSBS) planning has become an increasingly important consideration for wealth advisors and their clients. In a recent Wall Street Journal article examining the rise of “trust stacking” strategies, Indivisible’s Chief Tax Strategist Paul Lee shared his perspective on the distinction between thoughtful estate planning and structures designed primarily to multiply tax exclusions.
“If the only motivation is just to multiply the $15 million per taxpayer exclusion just for the benefit of themselves, that’s where it goes too far.” — Paul Lee, “Silicon Valley Is Obsessed With ‘Trust Stacking,’ and the IRS Doesn’t Like it”, The Wall Street Journal, June 29, 2026
For advisors serving entrepreneurs and business owners, the discussion underscores the importance of early planning, coordination with tax and legal professionals, and ensuring that wealth transfer strategies are grounded in legitimate estate planning objectives. As Treasury and IRS scrutiny increases, advisors can play a critical role in helping clients navigate opportunities while managing risk.
Planning for a significant liquidity event?
The most effective tax and wealth transfer strategies are often implemented years before a transaction closes. Connect with Paul Lee and the Consiglio Advisors team to discuss your unique circumstances and long-term objectives.