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Estate planning
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ajb71
Posted 12/2/2012 18:06 (#2729015)
Subject: Estate planning


NW IA		Parents looked at LLC and LP and doesn't look to be working for what they want. Trying to get ownership to children and still keep income to themselves. Any expierence on estate planning that has worked?
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BHTN
Posted 12/2/2012 18:27 (#2729066 - in reply to #2729015)
Subject: RE: Estate planning



West Tennessee		I am no expert at estate planning but I do see a lot of plans. Family limited partnerships seem to be pretty popular with the advisers I see. I don't see any reason why one of these won't accomplish what they want. What problems do they see with the LLC's and LP's? I assume you know without me telling you that this isn't a generally a recommended DIY project.
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Dave NWIL
Posted 12/2/2012 18:57 (#2729129 - in reply to #2729015)
Subject: Intentionaly defective grantor trust ??


is this what you are trying to do??

http://www.estate-plan.com/pdf/Art_IDGT_vac.pdf
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necaseih
Posted 12/2/2012 19:06 (#2729144 - in reply to #2729015)
Subject: RE: Estate planning


SC Nebraska		You should be able to do that through a LP....also could do it with an irrevocable trust.
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tech5201
Posted 12/2/2012 19:40 (#2729207 - in reply to #2729015)
Subject: RE: Estate planning


EC NE		I'm a big fan of C Corps.

We incorporated the farm assets when the folks retired 30 years ago.
Parents held the majority stock, act as the Directors, & took salary through simple payroll procedure.
Retained earnings accumulate on the balance sheet.
A brother farmed for quite a while & was paid salary.

We now rent & the folks have passed.
The C Corp. has made all the transitions very smooth.

Health-care premiums for the stockholders can be expensed through the C Corp.

I am not a lawyer & this is not legal advice! :-)
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Topshot
Posted 12/2/2012 21:50 (#2729519 - in reply to #2729015)
Subject: Re: Estate planning


Near Richmond, IN		We are currently a sub chapter S corp but we are changing to three LLC's and a trust to do just that. Just setting up the three trusts and gifting just 2% such as 1% from each parent to at least one child greatly reduces the tax burden---approximately a 50% reduction in taxable estate. Then you can gift more shares as time goes by yet retain control by keeping more than 50% held by two people, therefore controlling how much "income" gets transferred too. A little more involved than I'm telling you but it's really fairly simple and also protects you from lawsuits and also helps protect from nursing home care bills. The three LLC's---one owns the farmland, one owns the machinery, and one does the farming. A trust owns the shared.
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Plierswearer
Posted 12/2/2012 23:15 (#2729750 - in reply to #2729519)
Subject: Is that the moral thing to do?


Midwest
Topshot - 12/2/2012 20:50

We are currently a sub chapter S corp but we are changing to three LLC's and a trust to do just that. Just setting up the three trusts and gifting just 2% such as 1% from each parent to at least one child greatly reduces the tax burden---approximately a 50% reduction in taxable estate. Then you can gift more shares as time goes by yet retain control by keeping more than 50% held by two people, therefore controlling how much "income" gets transferred too. A little more involved than I'm telling you but it's really fairly simple and also protects you from lawsuits and also helps protect from nursing home care bills. The three LLC's---one owns the farmland, one owns the machinery, and one does the farming. A trust owns the shared.



Protecting your parents assetts so they dont have to pay a nursing home for their care? Why shouldnt they have to pay?

Buy nursing home insurance to protect the farm, or keep them at home and take care of them yourself.

Step up and do whats right!
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Topshot
Posted 12/3/2012 03:23 (#2729941 - in reply to #2729750)
Subject: Re: Estate planning


Near Richmond, IN		Why don't you step up and put your name and where you live on your account for everyone to see like I do. My family has always paid for whatever happened, including nursing home care, I was just pointing out what all this accomplishes.
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BigNorsk
Posted 12/3/2012 00:03 (#2729864 - in reply to #2729015)
Subject: RE: Estate planning



Rolla, ND		If you are talking land, a life estate would do what you are asking.
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barren
Posted 12/3/2012 05:20 (#2729967 - in reply to #2729015)
Subject: RE: Estate planning


Glasgow, Ky

Have you talked with a lawyer specializing in estate planning?  If not that is the first step you need to take.  This is a complex issue and needs to be structured properly. 

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pat-michigan
Posted 12/3/2012 08:24 (#2730152 - in reply to #2729967)
Subject: RE: Estate planning


Thumb of Michigan
Ron Seagraves - 12/3/2012 05:20

Have you talked with a lawyer specializing in estate planning?  If not that is the first step you need to take.  This is a complex issue and needs to be structured properly. 



Excellant advice.

Going through the final stages of a generational transfer as we speak. Then getting ready to start it all over again for the next generation.

Just a couple of things to talk with an expert about:

1. I know of a couple of farms that had gotten advice to put appreciable assets (ie farm land) into a C corp. many years ago. I can't go into to many deyails, other than it was as huge a mistake as predicted it would be by most estate lawyers and experts I know. Any asset that appreicates should be held in some other fashion. In other words, in most cases, anything is better than holding it in a C corp. In the cases I'm refering to, it was a tough deal to settle the estates w/o selling land, and thats tough to do w/o a huge tax bill if the C corp is still in place. Not sure if I can think of one good reason in a family owned farm scenario that a C corp would be a good way to hold land.

C corps are fine for owning assets that depreciate IMHO. Either tax wise or real value.

2. A Family Limited Partnership had some unique advantages when we formed one, not sure about now. There are some very good reasons to consider that structure especially tied to gifting allowances for generational transfers. Voting stock is different than ownership, its important to keep that in mind. I think its a very good thing to ask about anyway.

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tyler
Posted 12/5/2012 20:02 (#2735058 - in reply to #2730152)
Subject: Re: Estate planning


chestertown, md		What you want is called a slat trust.you can put assets including land or liquid assets and get them out of your estate and still have access to the income. Name wife and kids as beneficiary .just made two.very flexible.
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