Vallaster Family Estate Plan

A comprehensive wealth transfer strategy for the Estate of Don Vallaster, valued at approximately $30M–$32M, designed to preserve assets, minimize tax burden, and support charitable legacy.

Estate Overview
$31M
Estimated Estate Value

Approximate total value of Don Vallaster's estate

25%
Reduction Assumed

IRS lack of portability and marketability discounts applied

$7.5M
Trust Transfer Value

Final value gifted to Irrevocable Family Trust

Estate Plan Flowchart

The estate planning strategy utilizes four primary channels to manage and distribute Don Vallaster's assets. The Holding Company manages high-cost basis assets, the Charitable Foundation handles low-cost basis assets for philanthropic endeavors, and miscellaneous assets including life insurance provide additional liquidity and protection. All these channels ultimately feed into the Irrevocable Family Trust, ensuring a structured and tax-efficient transfer of wealth to Ara Vallaster and other beneficiaries.

Four Asset Transfer Channels
Holding Company

High cost basis property transferred to Vallaster Family Real Estate Holdings, LLC

Charitable Foundation

Low cost basis property gifted to Vallaster Family Charitable Foundation — Ara Vallaster, President

Misc. Assets

Cash, IRAs, and other holdings distributed separately

Life Insurance

Death benefit and cash value transferred outside the taxable estate

Vallaster Family Real Estate Holdings, LLC
Purpose

Holds high cost basis property, allowing for stepped-up basis and reduced capital gains exposure upon future transfer.

IRS Discount Strategy

A 20%–40% valuation discount may apply due to lack of portability and marketability. A 25% reduction is assumed, bringing the taxable value from $10,000,000 to $7,500,000 before trust gifting.

Charitable Foundation
Low Cost Basis Property

Gifting appreciated, low cost basis assets to the foundation avoids capital gains — ALL GAIN goes to charity, not the IRS.

Leadership

Ara Vallaster serves as President, maintaining family oversight of philanthropic direction and distributions.

Tax Strategy: Choose Carefully
Key Decision
Some Gain vs. All Gain

Asset placement determines tax outcome. High cost basis assets to the Holding Company result in SOME GAIN. Low cost basis assets gifted to the Foundation result in ALL GAIN — avoid undue tax burden by choosing the right channel for each asset.

Some Gain

High cost basis → Hold Co

All Gain

Low cost basis → Foundation

Irrevocable Family Trust
01
Hold Co Gifts to Trust

Vallaster Family Real Estate Holdings, LLC transfers value into the Irrevocable Family Trust

02
Trustee Oversight

Ara Vallaster serves as Trustee, managing distributions and protecting beneficiary interests

03
Final Transfer

Assets pass to The Estate of Ara Vallaster & Beneficiaries, completing the generational transfer

Complete Transfer Pathway

The full estate plan routes assets strategically to minimize IRS exposure, maximize charitable impact, and ensure a tax-efficient generational transfer to Ara Vallaster and the family beneficiaries.

Preserving the Vallaster Legacy
Asset Protection

LLC structure and irrevocable trust shield assets from estate taxes and creditors.

Charitable Impact

Foundation ensures low basis assets generate maximum philanthropic value, not tax liability.

Generational Transfer

Structured gifting passes wealth efficiently to Ara Vallaster and future beneficiaries.