This Article introduces the taxpayer to the basic background principles needed to understand the inner workings of the investment, then provides a guide to drafting considerations for the family's attorney, and concludes with a general plan to maintain business legitimacy and take advantage of tax-favored status, while retaining the flexibility essential to combating the unexpected. Part II addresses the historically favored tax treatment of life insurance products, as well as relatively recent restrictive reforms. Part III addresses the background foundation of the LLC entity and surveys its skeletal structure. Part IV introduces a practical example of how to create an LLC that will serve the unique purpose of estate planning. Part V demonstrates the way in which the LLC interacts with specific types of assets throughout its use. Finally, Part VI discusses the transfer of LLC assets from one generation to the next, both during the lifetime and after the death of the founding members. Through this proposal, significant tax and legal benefits will be utilized to stabilize and maintain the family assets.
Evan Michael Purcell,
The Family LLC: A New Approach to Insuring Dynastic Wealth,
8 J. Bus. Entrepreneurship & L.
Available at: https://digitalcommons.pepperdine.edu/jbel/vol8/iss2/3
Business Organizations Law Commons, Estates and Trusts Commons, Insurance Law Commons, Taxation-Federal Estate and Gift Commons