Tax Efficiency

A financial process is said to be tax efficient if it is taxed at a lower rate than an alternative financial process that achieves the same end.

Passing one's assets onto one's heirs using a Grantor Retained Annuity Trust, for example, is potentially more tax efficient than simply letting the heirs inherit the assets.

Famous quotes containing the words tax and/or efficiency:

    “In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.”
    —Alexis de Tocqueville (1805–1859)

    “I’ll take fifty percent efficiency to get one hundred percent loyalty.”
    —Samuel Goldwyn (1882–1974)