Victoria’s estate includes a complex mix: rental properties, an active business, and a portfolio of marketable securities. Without a strategy, the federal estate tax threatens to claim a substantial share of her legacy. She wants to transition assets to her children in a way that is not only tax-efficient but also provides long-term protection.

If Victoria implements a forward-looking estate plan, she can restructure her holdings into separate limited liability companies (LLCs) – one for real estate, business interests, and marketable investments. This structure will enable her to apply valuation discounts that reflect reduced control and marketability, which can lower the taxable value of the underlying assets.

She can then gift minority interests in each LLC to her children. These gifts, made under the annual and lifetime exemption limits, should reduce her estate’s future tax liability while retaining control over the assets during her lifetime.

This coordinated strategy should position Victoria to retain authority over her holdings while efficiently transferring wealth to her children. The use of LLCs generates meaningful valuation discounts, shielding more of her estate from taxation and introducing structural protection for future generations. By acting early and working closely with her advisory team, Victoria can reduce estate tax exposure and reinforce long-term financial stability for her family. This approach serves as a blueprint for business owners seeking to preserve wealth and maintain control—today and well into the future.