LLCs And Trusts Protect Assets During Estate Planning In Florida
August 25, 2013
Those with a high level of assets need to take special precautions in order to protect these assets. Proper estate planning will make sure that these assets will be available for their heirs after they pass away. Many of these wealthier individuals have been turning towards trusts and limited liability companies (LLCs) in order to protect their assets in Florida and in other state.Since 1983, there has been almost a 35 percent increase in the use of LLCs and trusts nationwide, according to data from the Internal Revenue Service. Many people are attracted to using trusts because trusts can help them steer clear of probate court as well as minimize tax liabilities. Overall, trusts usually make transferring assets to heirs easier.LLCs serve a similar purpose to trusts in estate planning. Many families with significant assets will incorporate their personal property under an LLC. This helps protect assets and property from debts and taxes. Also, assets incorporated under an LLC are protected from lawsuit judgments against the families as well. However, whether trusts or LLCs are the best option will depend upon each individual case. In order to make the right decision, one will have to research more thoroughly the differences between the two legal entities in Florida or in any other state. Additionally, it is important to be knowledgeable about the proper procedures to create these legal entities for estate planning. Also, it is important to be clear about one’s estate planning goals when making these decisions while planning an estate.