Entities and Title 2022

Overview

Before launching into an estate planning program, knowing who owns what and exactly for whom you plan is essential. This requires that methods of holding title must be analyzed, considered, and selected. Sole proprietorships, S corporations, C corporations, partnerships, and limited liability companies are analyzed for formation, operation, and ultimate disposition. Since who or what holds title imposes its own unique tax and legal consequences on the estate plan, emphasis is given to maximizing tax benefits in each business format. While each has its separate characteristics, several may be used together in more sophisticated planning.

Highlights

• Individual ownership & sole proprietorships • Corporations • Trusts and co-tenancies • Co-tenancy taxation, percentage interests and partition • Partnership taxation and recapitalization • Family partnerships • Limited liability companies • Retirement plans • Custodianship • Estate

Objectives

• Specify the various types of corporations, identify S corporation rules and their tax advantages and disadvantages, cite the advantages and disadvantages of corporations relative to other types of entities, and determine how leasebacks to corporations work; • Identify the different types of joint ownership and how to use the benefits of partnerships, trusts, and limited liability companies to hold property; • Recognize the various retirement plans specifying how they can be used to provide substantial lifetime benefits to a business owner and to employees.