Variety Of Options Available For Estate Tax Planning In Florida
May 20, 2013
When one considers planning of an estate, he or she wants to make sure that his or her assets are properly transferred to intended beneficiaries after death. However, another aspect to consider in estate planning is estate tax planning. Most people in Florida and elsewhere will want to do everything possible to minimize the estate tax liabilities for their intended beneficiaries. There are a variety of methods and strategies which people commonly implement in order to achieve this.
One commonly used technique is to sell a business to one’s children, however some experts do not believe this is an effective method of reducing tax liability. Instead some experts suggest creating an intentionally defective trust. This estate planning tool will enable parents to transfer a business to their children without having to pay income tax and capital gains tax.
Another common technique is to create a family limited partnership. However, some financial experts believe that this is not the best way to transfer ownership of a business, a residence, IRA accounts or similar types of profit-sharing plans. On the other hand, experts believe that family limited partnerships are good for just about every other type of asset, such as real estate, stocks and bonds.
Other types of estate planning techniques which could save money on estate tax in Florida include qualified personal residence trusts, subtrusts, charitable remainder trusts and a variety of other options. However, before choosing the best estate planning options, one should have a firm grasp on applicable rules and regulations set forth by law. Also, each individual situation is different and must be properly analyzed from a legal and financial perspective.