Estate Planning With Family Partnerships

For estate planning purposes, a family partnership is typically a limited liability company or a limited partnership. A limited liability company (“LLC”) is an entity that combines the limited liability of a corporation with the “pass-through” taxation of a partnership. A family limited liability company (“FLLC”) is a standard LLC which is owned exclusively by family members. The typical FLLC is formed with two classes of ownership interests (voting and non-voting), and is managed by a “manager” who is selected by the owners (or “members”). A family limited partnership (“FLP”) is very similar to an FLLC. Although, an FLLC offers more protection than an FLP since no general partner (with unlimited liability) is required.

What is the the Buy-Sell Agreement Between Business Partners?

The sudden death of a shareholder in a closely held corporation can be a significant loss to the company’s on-going operations. It will leave a hole in the management team and could cause severe strain in decisions made by the surviving partners and new partner. The death of an important shareholder may also create enough concern at the corporate bank to freeze lines of credit or in the extreme, to call outstanding loans.

Capital Gains Elimination Trusts

First off I will give a short summary of the Capital Gains Elimination Trust (CGET). Then, I will provide some details about how it works and conclude with a case study as an example of how someone might use this.

The Guide to Good Estate Planning

Almost all individuals or corporates can benefit by investing in an estate planning lawyer. Hiring a lawyer will ensure that they get the best value from their land and other fixed assets during their lifetime and after it. While almost all of us buy homes, offices and other pieces of land with some specific purpose in mind, there are various considerations apart from the present use that need to be considered. These considerations may include the rate at which the property will escalate, the taxes to be paid, whose name it should be registered in and the best way to gift it. Estate Planning companies help answer such questions and many more. It is therefore important to hire a reputed law firm or a real estate attorney to guide and advise you at every step when it concerns large investments or gifts. It is not common for these companies to also provide advice and support in related legal matters so be sure to ask for all the expertise areas.

Intestacy – Passing Without Estate Planning – What Happens?

If a person passes on without estate planning of any kind, whether that planning is some kind of will or trust, they are said to have died intestate. Intestate law is the law that decides how assets are transferred and creditors satisfied if a person passes on without saying who gets the house, the car or the guarded family apple pie recipe. Intestacy law is a set of fall back provisions or rules that govern where the assets go, so that the state does not have to decide in each individual case what happens. Intestacy laws are like the default settings on computer program; they are there unless you intentionally alter them. Since most people die intestate, state intestacy laws govern how most people’s assets are distributed after their’ passing. Sometimes, even when a person has a valid will, if that will does not cover some portion of their property, then state intestacy laws will be used as gap-fillers or fallback measures so that all assets are covered.