Start with the basics
- Will / Trust -POA for Property and Health
- TOD/POD/Beneficiaries on all accounts/retirement
- Life insurance
Avoid Probate / Tax -inheritance tax
- Federal 40% tax rate for estates over $11.7 mil / $22 mil for married couples
- State (IL) 16% tax rate for an individual estate over $4mil
- Proper estate planning will keep you out of probate court and can shelter your assets from tax
- Structured trusts -can put your business into trust (certain requirements for licenses professional biz)
Buy-Sell Agreement
- Provides for how owners interest/shares will be valued upon death
- Can provide for a lump-sum payment to heirs without having to become involved in the management
- Solo owners will want to add heirs onto accounts or put into trust in order for heirs to wind up the business / have access
- Well written operating or shareholder agreements can also include these terms
As always if you have questions about it as always, feel free to reach out to the Law Office of Jade Carpenter, and I would be happy to help! See you next time.
The materials available at or within this article and video are for information purposes only and not for the purpose of providing legal advice. You should ask an attorney to obtain advice with respect to any particular issue of problem.
