In a "grantor trust, " for example, the tax is paid by the person who sets up the trust, so it doesn't drain assets from the trust itself, says Alan Kufeld, a certified publicaccountant at Rothstein Kass's family-office group.
In the course of a conversation with Douglas Stives, a certified publicaccountant in Red Bank, New Jersey, one tech executive confided that he was the only one in his office planning to honestly report his incentive options for 2000.