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Estate Planning Second Marriage Warning:  Don’t Disinherit Your Children

Estate Planning Second Marriage Warning: Don’t Disinherit Your Children

What do second marriage or blended family couples have in common with respect to estate planning and disinheriting their children? They have two goals in mind: 1) take care of the other spouse when they die; and 2) each spouse wants to make sure their son or daughter from a prior marriage is not disinherited. Estate planning is essential for second marriage or blended family couples.

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Warning: A Limited Liability Company May Not be the Best Entity for You

Warning: A Limited Liability Company May Not be the Best Entity for You

Are you considering starting a new business? Or do you have a business that is operating as a Limited Liability Company and considering changing to an S Corporation or a C Corporation? Whether you are starting a new business or already operating a closely held business, as a Limited Liability Company you probably did not consider all the ramifications and risks of the business entity form you selected. More than likely is that you never considered how the form of your business would affect your business exit strategy.

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Closely Held Business Succession Planning and Divorce

Closely Held Business Succession Planning and Divorce

Closely Held Business Succession Planning and Divorce Would Divorce Destroy Your Business?  An unexpected divorce can destroy your Business Succession Plan. As a business owner you are focused on all the operational issues of running your closely held business.  The...

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DOES YOUR BUSINESS EXIT PLAN INCLUDE A LIQUIDITY STRATEGY?

DOES YOUR BUSINESS EXIT PLAN INCLUDE A LIQUIDITY STRATEGY?   Jerry Learns Cash is King When He Starts His Business Exit  Plan Jerry does not have a Business Exit Plan that includes a liquidity strategy. Jerry has run his dry cleaning business successfully for the last...

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Asset Protection Strategies for Business Owners

Asset Protection Strategies for Business Owners

Asset protection invovles strategies for both your business assets and your personal assets. Asset protection strategies discussed include domestic and offshore trust, limited partnerships, insurance, irrevocable trusts, gifting, equity stripping, sale and lease back and other strategies.

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Business Succession-Questions for Your Lawyer

Business Succession-Questions for Your Lawyer

Business succession planning can be overwhelming. Before you ever set a business succession planning session with an attorney, you must ask yourself four basic questions. This article identifies the initial business succession questions every business owner must answer.

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Business Succession Planning Estate Planning and Trusts

Business ownres face unique challenges beyond using trust or wills in their estate plan. Buy sell agreements are a must for business owners, but they also need the most tax favorable, risk avoidance strategies to fund the buy sell agreement. This article addresses different strategies to fund business succession and estate planning.

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WHAT EVERY BUSINESS OWNER MUST KNOW ABOUT THE 2017 ESTATE AND INHERITANCE TAXES

WHAT EVERY BUSINESS OWNER MUST KNOW ABOUT THE 2017 ESTATE AND INHERITANCE TAXES

In 2017, the applicable federal estate tax exclusion is $5.49 million. Under federal law there is a gift tax and an additional generation skipping transfer tax. The $5.49million exclusion applies to both the lifetime gift and generation skipping transfer amount.Oregon is a decoupled state, meaning it has its own inheritance tax in addition to the federal estate tax. Once an estate is in excess of $1.0 million, then the estate is taxed at inheritance tax rates starting at 10% and increasing to 16% as the estate size increases. Unlike the federal law, there is no portability of any unused portion of the first to die spouse’s exemption to the second spouse. This aritcle addresses how a business owner can get the money to pay the estate taxes on the deceased spouses business interest.

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How to Eliminate Estate Taxes Using an Irrevocable Life Insurance Trust

One misconception about life insurance is that it is tax free. Although the general rule is that life insurance proceeds are income tax free to the beneficiary, life insurance proceeds may be subject to federal estate tax, state inheritance tax, gift tax and generation skipping tax. The gross estate includes the proceeds of life insurance on the life of the decedent to the extent that the proceeds are received by the decedent’s estate or the decedent’s beneficiaries and, the decedent possessed “any incidents of ownership.” There are several options for avoiding ownership of the policy and inclusion in your estate when you die. You can give the policy to another person or you can create an irrevocable life insurance trust (“ILIT”) and transfer ownership to the ILIT. The ILIT trustee can use proceeds to purchase the closely held business interest from the estate at the owner’s death

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