Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Careers/Open Positions

Explore all available job
listings and become a part of an amazing team.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts
Do You Owe The AMT?

American educational reformer Horace Mann called education “the great equalizer.” In football, it’s been said ...

See more
What is the Value of Your Business?

In the second quarter of 2023, more than 2,300 small businesses were sold. The median ...

See more
Immediate vs. Deferred Annuities

Despite not being as well known as some other retirement tools, annuities account for 6.5% ...

See more

Could Partnership Income Tax Rules Help You with Estate Planning?

May 30, 2017

It’s no surprise to anyone who has engaged in the estate planning process already that there are plenty of strategies out there to help you accomplish your planning goals while also passing on as much wealth to the next generation as possible. Many of these tools, though, could still be subject to generation-skipping taxes or other measures Congress has put in place. One novel strategy that could help minimize taxes is by granting a family member partnership interests in a family business.

The most common way to think about estate planning without using this tool involves reducing the values of assets that will be included in an estate in order to pass on the future appreciation to the next generation taking control of that asset. This is usually done with tools like intentionally defective grantor trusts, grantor retained annuity trusts, or qualified personal residence trusts. While all of these certainly have their place, each does come with some disadvantages that could compromise your ability to accomplish estate planning goals.

advanced tax planning strategies lawyer

Partnership income tax law provisions, however, could be the solution you’ve been searching for. A family business already taxed as a partnership, for example, could help accomplish estate planning goals successfully. You can reallocate portions of income and use transfer of appreciation or current value without having to tap into any lifetime or annual exclusions. Even better, this can help you avoid the negative implications of a generation-skipping transfer tax. There are a lot of complex strategies that can help high net worth families, but these should always be evaluated carefully by an experienced estate planning lawyer due to their complexity. All of the details really matter when it comes to strategies like this.

When looking for estate planning solutions, it’s good to have an eye towards strategies that help you accomplish multiple goals at once. The right estate planning lawyer can play a critical role in helping you identify these.

 

 

 

 


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Careers/Open Positions

Explore all available job
listings and become a part of an amazing team.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts
Do You Owe The AMT?

American educational reformer Horace Mann called education “the great equalizer.” In football, it’s been said ...

See more
What is the Value of Your Business?

In the second quarter of 2023, more than 2,300 small businesses were sold. The median ...

See more
Immediate vs. Deferred Annuities

Despite not being as well known as some other retirement tools, annuities account for 6.5% ...

See more