Over years, I have had the experience of converting corporations (either S Corps or Corps) to a limited liability company (LLC). The reasons are to achieve better asset protection from outside creditors and have less ongoing documentation (avoiding corporate minutes) but not to be considered to have liquidated for income tax purposes. I have also […]
It is almost the start of new year, and, as I am writing this article in December 2012, the uncertainty of the “Fiscal Cliff” is far from settled. One thing is for certain: your family wealth should continue to be addressed to ensure that it is preserved from both creditors and death taxes. The “devil […]
Everyone has heard the old slogan about the inevitability of death and taxes. For 99.3% of the population death taxes will not be an issue for their heirs since an individual can transfer up to $5,250,000 or a couple up to $10,500,000 under the new American Taxpayer Relief Act of 2012 (“ATRA”). For the first […]
People often ask me, what are some of the typical business owner’s concerns that I discuss with them regarding their business? In an article by Martin S. Finn, CPA, who mentioned the top ten businesses and estate planning mistakes, I was reminded of the three areas that I typically spend most of my time discussing […]
People are often surprised to learn that tax planning can be an aid in solving closely held business problems. Over time, families and closely held business owners have differences. Sometimes the best way to handle the problem is to have the business be divided. The question is whether or not it can be done tax […]
In today’s tax environment, with transfer taxes as well as income and capital gains taxes slated to rise substantially next year, planning for the terminally ill could yield large savings for surviving family members. John J. Scroggin a noted author and planning expert outlines the unique planning possibilities that arise this year in planning for […]
Family businesses statistically have only a 20% chance of being successfully transferred on to the next family generation. As I have mentioned before in other articles, the death tax owed on the death of the owner of the business is not the major factor for the loss of the business from one generation. To the […]
As everyone is painfully aware at this point, the $5.12 million gift tax exemption is scheduled to expire on December 31, 2012. Naturally, using the exemption before it expires is a very hot topic among high net worth families and their advisors. Jeffrey A. Baskies published in October 2012 an article regarding a year-end planning opportunity […]
We are coming to the end of a two years period, through the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” (“2010 Act”) that a couple could have transferred up to $10 million without having to worry about their estate paying any estate taxes on the death the surviving spouse ($5 million […]
2012 will be the last year where the transfer of wealth between family members will increase dramatically because of the $5 million lifetime gift tax exclusion per person, or $10 million between couples under current law. I have referred to the additional $4 million as “Monopoly money” from Congress due to this unexpected increase for […]