The Use of Limited Partnerships in Tax, Estate, and Business Planning
Tax, estate, and business planning entails mastering the formidable task of combining four similar, yet sometimes divergent goals of 1) reducing income, estate and other taxes, 2) preserving the family business, 3) satisfying desires regarding the disposition of property, and 4) protecting assets from unnecessary liability exposure to creditors. In achieving these goals an important instrument to be utilized is the family limited partnership.
The Use of Trusts in Business Continuation and Succession
Although trusts are widely used in many different contexts, this article will focus on the use of trusts in planning for business continuation and succession. First, it will highlight key issues that arise in drafting trustee powers to extend an owner’s control or influence over a business after the owner’s disability or death. Next, it will analyze the use of trusts to facilitate business succession where cross-purchase arrangements are used. Finally, it will discuss the use of trusts to hold S corporation stock. This article is only an overview, and the techniques discussed below should only be used after thoroughly researching all related issues.