Before launching into an estate planning program, its important to know who owns what and exactly for whom you are planning. 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 as to 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 the maximization of tax benefits in each business format. While each has its own separate characteristics, several may be used together in more sophisticated planning. As a result of studying the assigned materials, you should be able to meet the objectives listed below.
At the start of the materials, participants should identify the following topics for study:
* Individual ownership & sole proprietorships
* Corporations
* Trusts & co-tenancies
* Co-tenancy taxation, percentage interests & partition
* Partnership taxation & recapitalization
* Family partnerships
* Limited liability companies
* Retirement plans
* Custodianship
* Estate
Learning Objectives
After reading the materials, participants will be able to:
1. 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;
2. Identify the different types of joint ownership and how to use the benefits of partnerships, trusts, and limited liability companies to hold property;
3. Recognize the various retirement plans specifying how they can be used to provide substantial lifetime benefits to a business owner and to employees.
