There are more estate planning options available to you than you might think. For example, it’s possible to create a limited liability company (LLC) between you and family members to reduce the amount of estate and gift taxes you’re obligated to pay. An LLC also allows you to provide advances on inheritances when necessary.
Walk-In Wills can help you make sense of the numerous estate planning options at your disposal. Our licensed attorneys are here to answer your questions, whether you have relatively few assets or need help with a massive estate.
LLCs are a business entity that safeguards owners from personal liability. With a sole proprietorship, a person may be on the hook for any debts the business incurs. With LLCs, the business is a separate entity, which means that an associate or client can pursue the owner legally if a loss occurs.
In terms of taxes, LLCs are treated differently from corporations. The individual owner pays taxes on the business via their personal tax return. However, the option is there to be taxed like a corporation, even though you own an LLC. In this case, the business would be beholden to specific laws and regulations. Formal documents must be filed to establish your business as an LLC.
Along with being a business entity, you can also establish an LLC for estate planning purposes. Many people with larger estate do so to prevent massive estate taxes from being levied. A family LLC also allows you to provide gifts to your children during the course of your lifetime without incurring gift taxes, which can become quite expensive over time.
Much like a business, parents hold control over the management portion of LLCs, while heirs are considered shareholders. Once the LLC is established, assets can then be transferred over. Because heirs can’t manage any of the assets, their privy to lower taxes on assets distributed to them. A number of assets can be transferred into a family LLC, including stocks, homes, vehicles, and money from personal bank accounts.
We’ll help you decide where your family should establish an LLC to disperse assets to heirs. Walk-In Wills can also help with other estate planning matters, including the creation of wills and trusts.
