QSBS Trusts | Promissory

IDGT

Intentionally Defective Grantor Trust

Best for early-stage founders, 3+ years to exit

You’re building toward an exit but still have time. An IDGT lets you pay the trust’s income taxes personally, keeping more wealth inside the trust while retaining flexibility as your situation evolves. When exit approaches, it converts to a non-grantor trust, the structure required for QSBS treatment.

Example

Series A founder gifts 100,000 shares at $0.50/share. Company exits at $98/share five years later. The trust’s $9.8M gain is entirely tax-free after conversion.

SLAT & SLANT

Spousal Lifetime Access Trust

Best for married founders who want spousal access

You want the QSBS benefits without putting assets completely out of reach. A SLAT gives your spouse access to trust assets for health, education, maintenance, and support, while the trust claims its own exclusion at exit when converted to a SLANT (non-grantor version).

Example

Founder gifts 150,000 shares at $1/share. Spouse retains access throughout. Trust receives up to $15M tax-free at exit.

NGT for Today

Non-Grantor Trust for Children

Best for founders with children, or those planning for the next generation

A single trust can benefit multiple children, with age-based or condition-based distributions for education, employment, or major milestones. Before exit, it splits into individual trusts, each with its own $10M–$15M exclusion.

Example

Founder gifts 200,000 shares at $0.75/share to a trust for two children. The trust is set up with age-based splits and decants into two individual trusts, each sheltering up to $15M.

NGT for the future

Non-Grantor Trust for Future Children

Best for founders without children yet

You don’t have to wait to have kids to start building their exclusions. A trust for future children establishes the structure now. When children are born, they become beneficiaries.

Example

Founder establishes a trust for future children at Series A. Company exits four years later. The trust’s exclusion is fully intact even though children are born mid-holding period.

Built for you

The modern trust platform for hard-working founders

Everything you need to start stacking trusts today.

Trust Documents

Gift & Estate Valuation

A report that documents the price per share of your gift to the trust, required by the IRS.

Form 709 Preparation

A form filed with the IRS to report the value of your shares when you transfer them to your new trust.

Nevada Trust Custody

Your trust will be managed by a professional trustee in a tax friendly state.

All Ongoing Tax Reporting

Annual trust income tax returns, including form 1041 filed every year with the IRS until you exit, (and after).

Attorney Support

Review your trusts with our network of qualified attorneys whenever you have questions.

Starting at $1,500

Includes everything you need, all-in-one simple fee.

Learn more

FAQs

Common questions about QSBS trusts

How do I know which trust types are right for me?

It depends on your timeline, family situation, and planning goals, which is exactly what your initial consultation is for. Most founders end up with a combination: an IDGT or non-grantor trust for early flexibility, a SLANT for spousal access, and one or two trusts for children or future children. We map it out together before anything is drafted.

Can I establish a trust for children I don't have yet?

Absolutely. Trusts for future children are a common strategy for founders who are earlier in life. The trust is established now, and children become beneficiaries when they're born. The exclusion is preserved regardless of when they arrive.

When do I need to convert an IDGT to a non-grantor trust?

Conversion to non-grantor status is required before exit to qualify for QSBS treatment. We handle this process, typically 12 to 24 months before your anticipated exit. It’s a planned step, not an emergency, and it’s included in your ongoing support.

What’s the difference between a SLAT and a SLANT?

A SLAT (Spousal Lifetime Access Trust) is a grantor trust, useful for flexibility while you’re building your company. A SLANT (Spousal Lifetime Access Non-Grantor Trust) is the converted, non-grantor version required for QSBS treatment at exit. The conversion is a standard part of exit preparation that Promissory manages.

Will my trusts hold up in M&A due diligence?

Yes. Our trusts are designed to withstand IRS scrutiny, acquiring company legal review, and M&A due diligence. Multiple Promissory founders have exited with our trusts in place. We provide all required documentation for the diligence process and coordinate with your M&A attorneys.

What if I only want more than two trusts?

The setup fee covers up to two trusts, but you can add trusts for $250 each. Some founders start with two and add more before a future fundraise. Your initial consultation will help you decide what makes sense now versus later.

QSBS trusts for every scenario

Intentionally Defective Grantor Trust

Spousal Lifetime Access Trust

Non-Grantor Trust for Children

Non-Grantor Trust for Future Children

The modern trust platform for hard-working founders

Starting at $1,500

Common questions about QSBS trusts

Protect your equity. Maximize your outcome.