The answer to this question is yes, if the value of the farm exceeds the amount of the estate tax exclusion. At the present time, the federal estate tax credit or exclusion is $11.18 million. This is the amount that can be transferred before the estate tax would kick in. Here in New York where we practice law, there is a state estate tax in place as well, and at the present time, the exclusion is considerably lower than the federal exclusion.Fortunately, there are estate tax efficiency … [Read more...] about I own a farm, and the land is valuable, but I don’t make a huge amount of money. Will my family face estate tax exposure?
Yes, many people utilize buy-sell agreements. With the agreement called the cross-purchase plan, the partners in the business determine the value of a share. Each partner takes out an insurance policy on every other, and the total will equal the value of a share in the business. When one partner dies, the insurance policy proceeds will be used to purchase the share that was owned by the deceased partner from his or her family. … [Read more...] about Is there a succession strategy for small business partners?
The family limited partnership can be a very useful asset protection tool for some people. If you were to establish a family limited partnership, you would be the general partner. Members of your family would be added to act as limited partners. You as the general partner would have sole decision-making authority with regard to the actions of the partnership.We will provide a hypothetical example to explain the advantages of a family limited partnership. Let’s assume that you are a real … [Read more...] about Are there any other asset protection structures for businesses and real estate investors?
If you are a sole proprietor or part of a business partnership, you and the business are essentially the same entity. As a result, any debts that are incurred by the business are considered to be your personal debts. Plus, if you have a partnership, your personal assets would be in play if your partner or one of your employees was to be accused of negligent actions that caused damages.To protect your personal assets, you could form a limited liability company. Generally speaking, if the … [Read more...] about What are the benefits of a limited liability company?