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.