Stock options - either as nonqualified options or incentive stock options. The seller gets today's value but is paid in the future. Stock options are usually not taxed when issued. Nonqualified options are taxed when exercised if their value upon exercise is greater than the option price. Incentive stock options are not taxed until the stock is disposed of.
Nothing is taxed until the stock restrictions are removed.
This can cause a very high tax at the time the restrictions are removed if the stock's value has appreciated substantially. The unified credit can be used to eliminate taxes on taxable gifts made during a person's lifetime or to offset or eliminate taxes owed by his or her estate. For family-owned businesses and farms, there is a special exemption for decedents who die after 1997. The exemption is only available to decedents who were U.S. citizens or resident aliens at the time of their death, and who pass the business assets to qualified heirs - members of the family who have worked in that business for at least ten years prior to the decedent's death. Tax laws affecting the transfer of family businesses can be complicated and subject to frequent change.