The government has come up with a “permanent” estate tax solution. Does that mean you can get rid of your family limited partnerships and LLCs? What about your irrevocable trusts? There are a lot of good reasons for them!
Today we will hit on a few reasons why you should keep your family limited partnerships (or LLCs) you already have and consider adding them to your estate plan:
1) Asset protection: Entities like corporations, LLCs and limited partnerships add asset protection when proper business formalities are followed.
2) Management and control: A family entity can keep control of the family empire with mom and dad for as long as mom/dad want!
3) Income tax benefits: With the limited personal deductions available maybe you can receive income tax benefits from writing off expenses at the entity level rather than the personal level!?
There are more reasons, of course, so contact me to discuss. -John