GIFT And ESTATE TAX PLANNING And Sub Chapter "S" Trust
By: Seo5 Consulting
Submitted: 2010-08-13 01:38:40 | Word Count: 422
Gift and Estate Tax Planning:
Even when estates are valued at less than the minimum federal estate tax exemption [i.e., $1,000,000 in 2011], this does not mean that the estate would be exempt from death taxes. Several states have modified their exemptions and some of them impose inheritance or estate taxes on values much lower than the Federal exemption. Therefore, planning should still be conducted to insure that the state death tax bite is minimized. Get to know more about asset protection when it comes to protection of your personal and business assets, which includes Gift and Estate Tax Planning and Sub-Chapter "S" Trust.
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One method of reducing the taxable estate is to make gifts of assets to children and grandchildren and/or nieces and nephews. If such gifts by the donor do not exceed $12,000 per recipient then they are legally excluded from gift and estate taxation. Thus, a husband and wife with four children could jointly gift $24,000 each year to each child, or, a total of $96,000 each year to the four children.
At Casper P. Connolly & Associates we have been recognized for our leadership and innovation in the fields of international [offshore] and domestic asset protection, estate planning, tax and debtor/creditor law. Our primary goal has been to provide vital asset protection, estate planning and wealth preservation structures and services to our clients to properly protect them from the ever increasing "deep-pocket" syndrome of frivolous lawsuits and unwarranted legal actions that often arise in today's society.
However, a serious negative in making such transfers for gift and estate tax avoidance purposes is that they become the property of the recipient and can then be lost to third parties in the event of a divorce or a creditor's judgment.
Sub-Chapter "S" Trust
Sub-Chapter "S" corporate stock should be transferred to a Living Trust, but only after careful planning has occurred. If stock in an "S" corporation is transferred to a Trust which fails to contain certain detailed provisions for the ownership and disposition of such stock, then this failure could cause termination of the "S" status at the settlor's death and, as a result, trigger extremely adverse income tax consequences for the "S" shareholders.
For more informatiom please visit professionalassetprotectionservices.com.
Author Resource:-
The Connolly Law Firm have 34 years of experience drafting effective financial and asset planning documents. They use their experience to ensure that you are well protected in any of your financial investments around the world. For more information please visit www.professionalassetprotectionservices.com.
