Transferring Business Interests to the Family

Even with the allowable exemptions and exceptions available to you when planning for federal estate taxes, there is the real possibility that the remaining assets will be taxed at very high rates. To legally avoid this outcome, a number of strategies have been developed over the years that will allow you to pass on wealth to your family.

Consider using:

• the family limited liability company
• discounted business interests
• tax-free gifts
• trusts and S corporations
• annuities

But before you decide to use any of these strategies, carefully consider the implications of your transfer, because you will be diluting your ownership in what you worked so hard to build, as well as affecting the tax status of all the parties involved.

In addition, many of these strategies are illustrated in our Case Study -- Transferring LLC Interests to the Family.

Finally, it is always wise to consult an estate planning professional for advice before undertaking any planning strategies.