Your estate planning in New Jersey may include a successful business in your possession. Estate owners need to plan every detail of their estates for a legal transfer. The success of a business doesn’t inherently continue without its original owner. Only when a succession plan is in place, and beneficiaries and managers are named in your will will your business continue to progress. For even greater flexibility, a business can be used as an estate transferring tool.
Eliminating taxes
Estate and gift taxes can be avoided, but some assets are too valuable to pass the IRS’s radar. Effective estate planning includes strategies to store your assets without liability or through a sheltered account. The common conditions of an estate’s administration provide ample opportunities to reduce your taxes. This is a leading reason why sheltering assets via a business makes sense. By doing so, you make a nontaxable business your assets’ legal owner.
Businesses that are eligible
Sole proprietorships and corporations can legally receive the assets you own into their ownership. One of the most flexible options is limited liability companies. An LLC can be created to even structure a family estate plan. Your chosen beneficiaries, for example, can be given private shares of your LLC. Here, the value of these shares actually belongs to the business and not the heirs. This means that inheritors protect their assets within the business.
Estate planning in New Jersey
By putting the assets you own into an LLC, you, in a legal way, change ownership from you to the business. In this case, you are still the owner of the business and, therefore, the assets it owns. An LLC, however, is treated as a living being and can have its own possessions. Through the LLC, you can hedge away stocks, cars and even real estate.