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Question

Do I need to establish non-grantor trusts before a liquidity event to use QSBS stacking?

Answer

Yes. You should establish qualified small business stock (QSBS) stacking through non-grantor trusts before a liquidity event is on the horizon, when the stock’s value is lower. This helps reduce gift tax implications and allows each trust to qualify as a separate taxpayer for the $15 million exclusion. Early planning with a Mercer Advisors estate planning specialist can help ensure proper structuring.

Related FAQs

How do I check if my company’s stock qualifies for the QSBS exclusion?

How does QSBS stacking compare to holding shares individually?

How does the new tiered holding period for QSBS function?
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Last Updated Nov. 10, 2026
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