If you're a business owner who wants to save on estate taxes, you might want to take a page from presidential candidate Donald Trump's playbook.
This month, the Trump International Hotel in Washington, D.C., kicked off a "soft opening," checking in its first guests.
The luxury facility is located in the Old Post Office Pavilion, a federal building that has undergone a $200 million makeover. The Trump Organization signed a 60-year lease in 2013 with the General Services Administration, allowing the firm to renovate and manage the building.
The lessee of the building, listed as "Trump Old Post Office LLC" is owned by a Delaware-registered group of limited liability companies, according to the lease document. DJT Holdings LLC holds a 76.725 percent membership interest in the company, and has made an equity contribution of more than $2.3 million, according to the lease. Members are considered owners of LLCs for tax purposes.
The lease document sheds light on an estate-planning technique the 70-year-old Trump appears to have used. Essentially, by giving the children an interest in the hotel now, Trump's estate would save a bundle on future taxes when the hotel stake presumably will be worth much more.