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:

    “Rumble thy bellyful! Spit, fire! Spout, rain!
    Nor rain, wind, thunder, fire are my daughters.
    I tax you not, you elements, with unkindness;
    I never gave you kingdom, called you children.”
    —William Shakespeare (1564–1616)

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