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:

    “I have no doubt that it was a principle they fought for, as much as our ancestors, and not to avoid a three-penny tax on their tea; and the results of this battle will be as important and memorable to those whom it concerns as those of the battle of Bunker Hill, at least.”
    —Henry David Thoreau (1817–1862)

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