Estate and Tax Planning for Family Businesses
A family-owned business presents unique legal issues, from formation and transactions to tax implications and succession planning. Boelter & Associates can advise clients on all estate planning and tax planning issues of a family operation.
Considerations in Family Partnerships and LLCs
Arthur H. Boelter brings over 35 years of experience in tax law to these important issues. Based in Seattle, his practice represents small to mid-sized closely held businesses in the greater Puget Sound area and across Washington state. Call (206) 587-0000 for an appointment.
Wealth Preservation through Family Partnerships and LLCs
Organizing as a family limited partnership (FLP) or family limited liability company (LLC) has many advantages:
- It is a more effective alternative to 1031 exchanges for reducing capital gains taxes on significantly appreciated real estate.
- It allows for annual gifting of fractional interest to the next generation to reduce or eliminate federal estate taxes.
- It offers better protection from creditors.
- Your heirs have a greater stake in the continued prosperity of the business as they prepare to take the reins.
- It creates a simpler exit strategy when selling to interests outside the family.
On the other hand, the IRS is skeptical of FLPs and closely scrutinizes deductions, reported income, transactions and intergenerational gifting. Without qualified legal advice, it is easy to run afoul of federal investigators and be assessed additional tax and penalties.
Arthur Boelter help owners of a family partnership or LLC structure transactions for maximize capital gains tax savings while complying with IRS regulations. He can also advise family businesses on other — perhaps preferable — wealth preservation strategies and asset protection.
Contact Boelter & Associates to discuss the pros and cons of family limited partnerships or family LLCs.
