Should Executives in Wisconsin Put Employer Stock Into a Trust?

Corporate executives in Wisconsin often receive a large portion of their compensation through restricted stock units (RSUs), stock grants, or employer equity awards. As your shares vest, they can quickly become a significant part of your net worth—and with that comes complex questions about taxes, transfer planning, and probate exposure.

One of the most effective strategies to gain more control over how your vested shares are handled is transferring employer stock into a trust. For Wisconsin executives, a trust can help reduce stress, streamline estate administration, and protect the value of long-earned compensation.

This article explores what happens when executives hold vested shares inside (or outside of) a trust, and whether this strategy may make sense for your estate plan.

Vesting, Timing, and Probate Risk

RSUs and stock grants typically vest over time, often tied to performance milestones, tenure, or corporate goals. Once vested, the shares belong to you—and that’s where estate planning issues begin.

If an executive unexpectedly passes away with vested employer shares titled in their personal name:

• The stock may need to go through Wisconsin probate

• Probate can take months—and sometimes longer if valuations or business interests are involved

• The probate court oversees the distribution of shares

• Delays could affect the value or timing of liquidation

On the other hand, if vested shares are titled in a properly structured trust:

• Probate is avoided

• Trustees can immediately act on the asset

• Family members or designated beneficiaries gain faster access

• There is more privacy and less court involvement

For executives whose estate may include high-value employer equity, avoiding probate can prevent unnecessary delays, risk, and cost.

Trust vs. No Trust: Outcomes for Wisconsin Executives

Below is a comparison to help visualize what can change when employer stock is moved into a trust as part of an executive estate plan:

Why Executives Consider Trust Planning for RSUs and Stock Grants

✔ Protecting long-term wealth

Executives often spend years vesting stock—and a trust ensures that value isn’t stalled by court delays or reduced by avoidable taxes or costs.

✔ Advanced tax strategy potential

While a trust doesn’t eliminate tax on vesting or sale, certain trust structures may allow more strategic timing or gifting planning, especially for high-value holdings.

✔ Better control over how beneficiaries receive assets

If you want:

• Shares held until children reach certain ages

• Proceeds invested rather than immediately distributed

• Shares used to support family members gradually

A trust allows you to define those terms clearly.

✔ Professional management

Executives often have complex financial lives. A trust allows you to:

• Appoint a professional trustee or co-trustee

• Centralize administrative responsibility

• Ensure continuity if something happens unexpectedly

When Employer Stock Should Not Be Placed in a Trust

Not every grant or equity program allows assignment or trust ownership. In some cases:

• Company plan restrictions prohibit transferring unvested or vested shares into a trust

• Stock award agreements limit who can hold the shares

• Additional corporate consent is required

Before transferring shares, executives should review:

• RSU/stock grant award agreements

• Company equity plans

• Employment contracts

• SEC or corporate governance rules (if applicable)

A corporate-savvy estate planning attorney can help ensure these rules are followed before taking action.

Should You Move Vested Employer Stock Into a Trust?

If you are:

• A corporate executive in Wisconsin

• Holding significant employer equity

• Seeking tax efficiency, privacy, and probate avoidance

• Wanting more control over who receives shares and when

…then transferring vested shares to a trust may be one of the most impactful steps you can take to protect your wealth.

Schedule a Private Consultation for Wisconsin Executives

Your employer stock awards may be the result of decades of career success. A carefully crafted trust can help make sure those assets are transferred efficiently and according to your terms—not the court’s.

Schedule a confidential consultation today to discuss how an estate plan can protect your RSUs, stock grants, and executive-level assets.