You and your family might have already thought about how your property and estate will be divided upon your death. You might have drafted a will to distribute your assets, or you might be considering what will happen to your estate for the first time. Regardless of where you are in the process, you should take another look at your estate plan to see if it is sufficient to protect you, your wishes, and your family.
An experienced trusts attorney could meet with you to understand your goals. Siedentopf Law may be able to help you create an estate plan that uses LLCs and trusts in Atlanta to better meet your needs.
Using a Limited Liability Company in Estate Planning
In the business world, a limited liability company (LLC) is an alternative to the traditional setup of a corporation or partnership. LLCs offer businesses more protection from liability and favorable tax treatment. LLCs can also offer advantages in estate planning because they assist with income tax, estate tax, and succession issues. LLCs are also relatively less complex to manage and have fewer requirements as compared to corporations.
The following are some of the advantages of using LLCs to help with estate planning goals, especially for those with small businesses or rental properties:
- Better flexibility
- Income tax benefits—LLCs are not usually subject to double taxation
- Shield for liability for all members—business partners or owners are not personally liable for business debts
- Estate tax benefits—the marketable value of an LLC’s interests is typically lower
- Succession advantages—an LLC member can pass their shares to their heirs over time through estate gifting strategies, lessening the inheritance tax burden
To minimize the risk of possible problems and take full advantage of the potential benefits of an LLC, you should meet with a team that could provide sophisticated legal guidance and knows how to skillfully create an LLC entity and operating agreement in Atlanta.
Using a Trust in Estate Planning
You can also use trusts in your estate plan, which help you and your heirs minimize your tax burdens. With a trust, the estate can often avoid going through probate, which can be both costly and time-consuming. Trusts can also help protect against some creditors and assist with business succession needs.
Revocable Trusts
Revocable or living trusts allow you to make changes as their circumstances change. They can add or take away assets. With a revocable trust, grantors can fund the trust while they are living, and the trust then distributes assets to their designated beneficiaries when they die. A revocable trust saves you the expense, time, and public nature of probate proceedings.
Irrevocable Trusts
Unlike revocable trusts, you cannot change irrevocable trusts. Once you contribute the assets into the irrevocable trust, you can no longer gain access to those assets during your lifetime. Grantors with particularly large estates often choose to put some of their assets into an irrevocable trust, which allows them to gift certain assets, protect those assets from creditors, and reduce the size of their taxable estate.
An experienced Atlanta lawyer knows how to create different kinds of LLC-based trusts that could protect you, your assets, business or rental property interests, and your family.
Call an Atlanta Attorney Today About Putting an LLC into a Trust
LLCs and trusts in Atlanta play a valuable role in estate planning for individuals with certain properties or businesses. If you are considering creating or modifying an estate plan, you should meet with Sarah Siedentopf who understands the tax implications of various estate planning strategies. Call us today to set up an initial strategy session.