QSBS Trust Stacking Comes Under the Microscope

Short summary

QSBS trust stacking—transferring shares into multiple non-grantor trusts to multiply the $15M capital gains exclusion—is under Treasury scrutiny as officials question whether aggressive structures exceed the statute's intent. Founders and VCs must move tax planning upstream, integrating corporate, tax, and estate counsel years before a liquidity event rather than months. Expect heavier IRS diligence on trust independence, timing, and documentation if future guidance narrows the strategy.

• •Treasury is examining whether aggressive QSBS trust stacking recycles exclusions without meaningful economic separation
• •Founders should structure QSBS and estate planning years before any exit, not at the last minute
• •VCs face increased diligence on trust independence, timing, and QSBS eligibility preservation

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