Transferring Business Interests to Family Can Preserve Wealth
To ensure that taxes do not consume the wealth you have worked so hard to create, it is necessary to plan ahead. Part of that plan may include transferring business interests to family members while you are still alive.
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.
- the family limited liability company
- discounted business interests
- tax-free gifts
- trusts and S corporations
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.