If you are making an estate plan of your own, you may be looking for ways to lower the tax burden on your beneficiaries and protect your assets from anyone will ill intentions. What if we told you that a family LLC can help you do both? Our estate planning attorneys in Ypsilanti, Michigan can help you figure out if this is the right arrangement for you.
Who Can Form a Family LLC?
As its name suggests, a family LLC needs to be formed by people who are family members. Forming an LLC is relatively easy, but rules and regulations concerning LLCs can change. We recommend talking to our lawyers to make sure that your family LLC gets set up in the most advantageous way. Once your LLC is set up, your assets can be shielded from lawsuits and protected for the next generation.
What Assets Can I Place in My LLC?
You can place just about anything that you want to pass down to beneficiaries in your family LLC. Money from bank accounts, properties, and items like automobiles or valuable collectibles can all be placed in the LLC, making it easy to track all of your assets and protect them.
Do I Maintain Control Over Everything in My LLC?
Some people choose to place their assets in trusts, and that can work for them, but some trusts do not give you full control over your assets. A family LLC could be the better choice for someone who still wants to control their assets.
You can still access anything you need from the family LLC. If you want to give a gift to one of your future beneficiaries, you can award them “shares” of the LLC at a discount. This can lower their future tax liability and allow you to give more in gifts without worrying about a gift tax.
What Happens to a Family LLC When I Pass Away?
When someone in charge of an LLC passes away, the company usually dissolves. However, you can make a succession plan for your family LLC and pass it down to a beneficiary who can make sure that everything ends up in its rightful place.
How Can an Estate Planning Lawyer Help Me?
As we mentioned, a family LLC may not be for everyone. An estate planning lawyer can evaluate your assets and talk to you about your plans. If it looks like this kind of arrangement will work for you, great! We will set it up for you. If there are other options worth exploring, we can help you with that.
Contact Our Law Firm Today
Planning your own estate can be difficult, so don’t go it alone. Contact Collis, Griffor & Hendra and schedule a consultation with our team. We can help you make the most out of estate planning tools and lower the tax burden on your family members.