I'm quite conservative, tax code and ethics wise, and ideas like this make me nervous.
Client has 2 kids in their early 20s that do not earn much.
He wants to gift them each 1% or 2% ownership of his business.
Then they will turn around and sell the business for about $6,000,000.
You see what he's getting at? The kids will have $60,000 or $120,000 of Long Term Capital gains and thus the family will save a nice chunk of tax on the sale.
Is this frivolously aggressive for some reason?