You have worked hard to create a legacy for your family, but the ever-changing estate tax rules and potential for creditors to seize your assets have you worried. At the Mathews Group, LC, we are passionate about helping families protect assets and reduce exposure to estate taxes.
A common practice for many wealthy individuals to reduce the size of their taxable estate is to use the gist tax exemption to transfer cash to their children over a period of years. This viable method allows you to transfer assets without a tax penalty. We draw on our background in both estate planning and business law to help clients protect their wealth while providing for their family.
Forming A Business Entity To Protect Family Assets
There are a wide variety of tools available to protect wealth and keep it in the family. Creating a trust is a commonly used vehicle to avoid probate, engage in Medicaid planning and reduce exposure to taxation. We help clients in Kansas City, as well as throughout eastern Kansas and western Missouri understand how forming a business entity may allow them to leverage gift tax principles and transfer assets within a family business venture. Forming a family limited partnership (FLP) or limited liability company (LLC) can be a strategic alternative to forming a trust.
For instance, if you have assets that may require management, such as real property, forming an FLP allows you to retain some control of the assets in a limited partnership with members of your family. You may transfer shares to family members over time using the gift tax exemption. A benefit of transferring shares (instead of cash) is that discounts may apply to the gift. Marketability and control discounts reduce the calculation of the value of the transfer for gift tax purposes. At the same time, the gift reduces the overall size of your estate for future estate tax purposes.
Arrange Your Free Consultation With A Kansas And Missouri Lawyer
Our founding attorney, Joshua Mathews, has a Master of Laws in taxation, as well as substantial experience in estate planning and business law. To learn how we can help you with asset protection planning to preserve the wealth that you have worked hard to acquire, we invite you to send us an email or call 913-660-0664 to arrange a no-pressure consultation. You will never be charged for the initial meeting.