Phil Knight Uses GRAT to Transfer $9B in Nike Shares to His Heirs
Phil Knight used a chain of Grantor Retained Annuity Trusts to move billions of Nike shares to his heirs, structured so the gift-tax bill rounds to zero. The strategy depends on the trusts’ assets outperforming the IRS 7520 rate and on Knight paying income tax during the term; otherwise the GRAT would fail and less value would pass tax-efficiently.