Q: I am an accredited investor and would like to transfer my interest in a recent Wien & Malkin syndication to my child or another individual who is not accredited. Can this be done?

A: Yes. An accredited investor can gift his investment to any person or entity at any time (whether or not such person or entity is accredited). Also, you may want to consider transferring your investment to a so called "grantor trust" with your children and/or other individuals as beneficiaries. These trusts are generally revocable and the transfer is not treated as a taxable event for either gift or income tax purposes. Generally, the income from the investment would continue to be reported on your personal income tax returns. Because the trust is not recognized as a separate taxable entity for income tax purposes, the trust itself would not file tax returns.

The above is intended as a very brief overview. Because of the complex issues involved and the need to determine whether the transfer to a grantor trust would accomplish your estate planning and other objectives, you should consult with your tax advisor before considering this option.

Please let us know if you have family or friends who might be interested in learning about Wien & Malkin investments.

Do you have a question you would like to have answered? Phone, mail, fax or e-mail us your question and we will be happy to answer it. We will feature inquiries and responses in this column.