If anything, this transaction will actually result in more taxes being levied than if he had transferred it to a foundation. There still will be capital gains tax when the LLC sells Facebook shares. It will pay income tax on any dividends. Any investments it makes will similarly be treated. There will be no estate tax dodge. The LLC will be valued at the value of its assets at the death of the last spouse and estate tax will be levied at 40% on that value.<p>Please, someone, tell me how this is a tax dodge.