Author |
Message |
Gene Agatep (Gagatep)
New member Username: Gagatep
Post Number: 18 Registered: 8-2002
| Posted on Friday, September 13, 2002 - 4:16 pm: | |
Tim, TY for some insights... I had a feeling the living trust may not be enough. I am interested in following up with your reference. Please private e-mail me his contact info. again, Thanks, Gene |
Tim Gendreau (Tim)
Junior Member Username: Tim
Post Number: 178 Registered: 3-2002
| Posted on Friday, September 13, 2002 - 4:03 pm: | |
Gene: I believe even with a company you will have taxes. I use a living trust, irevocable trust, an irevocable life ins. trust (ILIT)and a charitable family trust (CFLP). the ILIT pays estate taxes upon death of second parent and everything thens moves, essentially tax free to the children. The CFLP is complicated, and if not done correctly can get you in big trouble, but when executed properly will help you avoid a substantial amount of tax. I dont believe anyone would want the expense, accounting, legal, etc. of a CFLP unless you have in excess of $700K a year income as a minimum! if you are interested let me know and I will give you a number for the best guy there is on this stuff and reasonable - I will also give you more details.
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David Albright (Dalbright)
Member Username: Dalbright
Post Number: 398 Registered: 2-2001
| Posted on Friday, September 13, 2002 - 3:14 pm: | |
Start an offshore real estate company.....then "sell" the houses to the company, one every few years as to avoid the capital gains tax. Open 3 Swiss bank accounts and have the properties sold at your death and have all monies tranfered to the accounts equally and make sure your kids have the account number. Then send the kids off to europe to live a comfortable life. NOTE: not sure if this will work at all. |
Mitch P (Mitchp)
New member Username: Mitchp
Post Number: 27 Registered: 1-2002
| Posted on Friday, September 13, 2002 - 2:36 pm: | |
Generally speaking, a living trust DOES NOT avoid estate taxes. Seek the help of an estate/tx attorney who specializes in estate planning. THe rules are very fluid and any plan needs to be examined frequently. |
Jim E (Jimpo1)
Member Username: Jimpo1
Post Number: 744 Registered: 7-2001
| Posted on Friday, September 13, 2002 - 2:24 pm: | |
LMAO at Ed. |
Edward Gault (Irfgt)
Intermediate Member Username: Irfgt
Post Number: 1931 Registered: 2-2001
| Posted on Friday, September 13, 2002 - 1:50 pm: | |
There ia a company called Strategic Advisors that can advise anyone as to how to keep more of your money. They advertise in Dupont Registry. |
TomD (Tifosi)
Intermediate Member Username: Tifosi
Post Number: 1307 Registered: 9-2001
| Posted on Friday, September 13, 2002 - 1:39 pm: | |
hard to give concrete advice best is to talk to lawyers and other who use lawyers and can recommend go ones. That said the easiest way to give stuff to you kids without paying any taxes is to use the 10k per year per child per adult etc. Can also be extended to grandchildern etc. Of course you lose control of it but uncle sam does not get it |
Gene Agatep (Gagatep)
New member Username: Gagatep
Post Number: 16 Registered: 8-2002
| Posted on Friday, September 13, 2002 - 1:34 pm: | |
since we're in this topic... I need advice. How should I protect my assets for my children so that they pay minimal taxes after I pass away. Question 1. Have I done enough? Here's the scenario.... All real estate income earning rental properties are currently on a living trust. When I pass away, the properties will be divided to the children 3-ways equally. For arguments sake (I'm not crazy enough to put actual values) - let's say the properties are worth $2 million. If I die now, the properties won't go into probate since it is in a living trust. The $2 million value will be divided to the 3 children therefor, each just gained $666,6666. The children then have to pay taxes on their gain of $666,666. Is this correct? Question 2. Since these are rental income properties, should I convert to an S-corp now? If I convert the properties from the trust to the S-corp, therefor I sold the properties to the S-corp, therefor I have to pay taxes on this sale and the new higher real estate taxes yearly? With an S-corp, when I die, business continues for the children as normal. Question 3. To get the right advice, which type of lawyer should I use - specialist on family estate law or small business corp lawyer or a tax lawyer? I've been with a family estate lawyer that's where we've placed the property on a trust.
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TomD (Tifosi)
Intermediate Member Username: Tifosi
Post Number: 1305 Registered: 9-2001
| Posted on Friday, September 13, 2002 - 12:54 pm: | |
there are companies helping people do this all over - even the majors help do it KPMG, PWC. Be careful as the gov is cracking down though |
Warren L. (Warren)
Junior Member Username: Warren
Post Number: 118 Registered: 2-2002
| Posted on Friday, September 13, 2002 - 12:13 pm: | |
I saw an ad for a company by the name of Strategic Advisors the other day in Dupont Registry. They're tax advisors that help independents / company owners / high profile clients who make substantial amounts from their company, real estate transactions etc to keep their money. They basically find loop holes in the tax laws to generate "losses" to offset gains. Has anyone used their services or heard of them before? I'm interested. |