Succession planning: Trust parents to allow the sale of the company to his heirs

A technique for eliminating the sales tax a major responsibility for "mistakes hard to create the trust grant. Trust income tax rules to allow use of the confidence of donors - usually high - as big as the owner and the insurance tax to avoid the need for treatment.

If the beneficiaries of the trust, not parents, should be considered for the production of various products for tax purposes.

In general, a job as a promissory note related to financial transactions of sales. This is not the trust is placed and payment.

Property taxes are another area where there may be problems. However, there are ways to avoid them. If the property is transferred from the father of a child may prevent the change in ownership of the property tax and the goods have not been around.

Property, which is not the primary place of residence, parents may transfer up to $ 1 million in assessed value of any change in ownership, and triggering a reassessment of the property taxes. For example, if the property is transferred and purchases the'70s assessed value is less than $ 1 million, does not alter the property assessment and taxation of the transfer of the father to the child.

This method works only if a parent transfers property directly to their children and, if possible, to their spouses. If the parents let the corporation, partnership, corporation, or LLC, and transferred the shares to their children, the transaction does not qualify for exclusion from reassessment.