Estate Final - According to Moyer(2015 family owned...

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According to Moyer (2015), family owned business have been over the years passed down to younger generations through Family limited partnerships and limited liability companies. Of greater importance to him is that this passing down of ownership has been done in a way that reduces gift or estate taxes. They also have been used in recent years to pass down portfolios of publicly traded securities at a discount, something the IRS is looking to end, some estate lawyers say. Moyer (2015) also explains that a family limited partnership is set up by a husband and wife to own a business or securities which they expect will have an upsurge in value over time. The couple acts as general partners and makes gifts of limited-partner interests to their children. Those gifts remove the assets from the couple’s estate for estate-tax purposes even though the couple retains control of the assets. After this they should draw up a will I believe both spouses should have wills for this strategy to work. This is probably one of the most critical parts of this estate-planning strategy. This is simply because as dying intestate that has no will whatsoever, has the power of defeating almost every estate-planning arrangements you have put into place. If a spouse dies interstate, his/her assets will be distributed to his/her spouse, children and parents. This distribution will be done in accordance with the laws of the province where the deceased resided in. This may produce quite different results from what you would have wanted. (LaPonsie, 2015)
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