Estate Planning for an LLC Interest – Everything You Need to Know!

Limited Liability Companies or LLCs, just like other business organizations, need proper structuring. The owners of these LLCs are called members. They own a membership interest. There are various options to access and manage LLC interests and one of them is to not put them into the trust, unlike other business owner. This, however, is not considered the best option available.

Another affordable option is placing the LLC interest into a trust. The process requires the consent of the other LLC members if more than one is involved. Otherwise, a single member can file the paperwork.

Should you Utilize an LLC for Estate Planning?

In a word, yes.

Your loved ones can get several advantages from LLC after your death. For instance,

  • Reduction in the amount of gift taxes
  • Reduction in the amount of estate taxes
  • Keeping a control over your assets

The Tax Advantages of LLC

A better approach is to pass on your assets before you pass away. This way you can save a substantial amount of taxes.

Here is how it works.

Legally, you can gift $15,000 annually without having to pay any taxes with it. Why not utilize this opportunity?

By ‘gifting’ assets throughout your lifetime, you can save the 40% of the amount of your assets after your death.

You won’t receive an income deduction for sending gifts and the receivers will have to report them as incomes.

LLC as estate planning can help you cut down on taxes if you transfer your assets to a Limited Liability Company while keeping control over the funds.

Once you satisfy your fiduciary duties by LLC, you will be able to pass on your ownership interests to the beneficiaries.

Contact a Knowledgeable Estate Planning Attorney

If you want further information about LLC, contact us right away. At Keystone Asset Protection and Estate Planning, we would be more than delighted to provide our services so that you can protect your assets and preserve your hard work.