Can a deceased Person’s Estate escape debts and taxes? Yes and no… Here’s the skinny on what to do and how to do it. Includes is a warning to the personal representative that the debts and taxes of the decedent can be a time bomb waiting to happen and can throw a monkey wrench in the timing and distribution of the estate.
Partners pay tax on income earned even if it is not paid out to them The taxation of Family Limited Partnerships should be carefully considered in advance of setting up and rolling out your new FLP. FAMILY LIMITED PARTNERSHIP DEFINED State laws have provisions allowing people to establish limited partnerships. Limited partnerships provide limited liability […]
People form family limited partnerships to transfer ownership of properties or assets to family members while still maintaining control, to save on estate & gift taxes, to shift income from parents higher bracket to children’s lower brackets, to provide some asset protection against creditors of the limited partners.
Do you know that the IRS ignores revocable living trusts? Documentation prepared to establish a trust is not registered with any government agency or taxing authority. Typically the estate lawyer will retain a copy of any trust prepared and then the people establishing the trust will have their own copies.
Under our system of federal and state income tax, if the property is sold before death for more than what was pay for it then there is a capital gain. The income tax “basis” is what was paid for the property in the first place minus any depreciation and adding any expenditures for capital improvements.