I believe he could set up the farm as a partnership or LLC with you, and you take ownership at the time of his death...Originally Posted by 87sooner
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I believe he could set up the farm as a partnership or LLC with you, and you take ownership at the time of his death...
you believe?
have you ever seen that happen? for a fact?
my attorney friend said the irs can simply say "no....pay up"...
I'm not in the insurance business, so I have no clue what the insurance would cost. Given his age, though, it certainly can't be cheap.
Regarding your discussion with your friend, is he a full-time estate-planning attorney? If not, then you're speaking with the wrong person. My suggestion is for you to spend an hour or so with an Oklahoma-licensed estate-planning lawyer who deals with these issues on a daily basis. (You live in Oklahoma, right?) I don't live in Oklahoma, but I believe that discussion would cost you about $750 for a somewhat extensive conversation.
Also, given that the estate tax exemption per person this year is $5.12 million (and $10.24 million for a married couple), many people have been keeping the estate planners burning the midnight oil to implement their plans before that exemption amount likely will drop beginning on January 1, 2013. From what it sounds like is happening in D.C., the exemption amount will drop to $3.5 million (or $7 million per couple) beginning next year, but who knows until they actually come to an agreement.
I know a couple of good estate-planning lawyers in Tulsa, so PM me if you'd like their names.
hoping the exemption will be at least 3.5 mil and we won't have to worry about it....
my parents each have a will that will bequeath roughly half when each passes...
Have your parents' wills been reviewed by an expert in the estate-planning field? Probably a good idea to have it done, especially once we know what the law is effective as of 1/1/13.
Did he say whether or not he could give it to you now, and you only take it on at a lower tax rate?
Need to consider the gift tax here. Also, the use of a partnership (or an LLC treated as a partnership) raises complicated gift and other tax consequences.
I am considering it, as should 87...it may or may not be less punitive than the estate tax...I agree with you 100% that he should retain the services of a qualified attorney.
prolly wouldn't call him an "expert"...
i believe he is competent...
Does your competent friend maintain credentials that would find him personally liable for any advice that would lead you to a legal financial loss?
Cause that is the kind of competency you need.
As you obviously know, the estate and gift tax laws are pretty complicated, especially when it comes to implementing an arrangement that can mitigate or eliminate an estate's liability. Similar to going to a general practitioner for a neurological problem when you should be seeing a neurologist.
my dad's attorney is not my friend....
it's my dad's business who he hires as an attorney....
There ya go...
http://www.capitalresearch.org/2012/...ins-who-loses/
The estate tax will have little impact on Warren Buffett’s children, but it will affect the children of farmers and small business owners who are not 81 year old multi-billionaire investors. Very few of them will inherit so much that they can do nothing. But unlike Buffett’s children, the estate tax will prevent many of them from inheriting enough to do anything.
It is important to note that Berkshire Hathaway owns seven insurance companies that offer “second to die” (or “survivorship”) life insurance policies. These are policies that let wealthy people leave their heirs large sums by reducing the estate tax hit.
In fact, life insurance is the life’s blood of Buffett’s own fortune. Insurance premiums, which don’t have to be paid out to beneficiaries for years if not decades from now, provide the capital that has let Buffett expand Berkshire Hathaway. The value of these premiums is called the float, and the float of all Berkshire Hathaway-owned insurance companies totaled $66 billion in 2010. These funds are reinvested in stocks and bonds further increasing the value of Berkshire Hathaway stock and Buffett’s personal wealth at the expense of the very clients his life insurance companies are claiming to help.
Insurance accounts for one-third of Berkshire Hathaway’s operating profits. If the estate tax were repealed, it’s likely the demand for life insurance policies would drop, and Buffett’s float would sink.
Family businesses hit by the estate tax are not in the same category as Berkshire Hathaway. Nearly 70 percent of all family businesses do not survive to the second generation. When grieving families cannot afford to pay the estate tax, they are often forced to sell their businesses to publicly-owned companies like Berkshire Hathaway. These companies don’t pay estate taxes
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