LLCs for Estate Planning and Asset Protection

Maximizing Tax Advantages for Donors and LLC Members and Shielding Assets From Creditors

Recording of a 90-minute CLE/CPE webinar with Q&A


Conducted on Thursday, October 21, 2010

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will prepare tax advisors to use LLCs for estate planning and asset protection for family businesses or high-net worth individuals and how to avoid the pitfalls in setting up the entity and transferring assets to the entity. The panel will also discuss recent developments for single member LLCs.

Description

The LLC is considered the premier entity to protect personal assets while enjoying pass-through tax treatment. LLCs are also effective vehicles to minimize estate taxes on the transfer of assets to younger generations while allowing the donor to maintain some control over the assets.

LLC planning comes under IRS scrutiny if the LLC is created solely to avoid estate and gift taxes. Legal and tax counsel must assure that the LLC is set up in a manner that will pass a section 2036 challenge and that members follow the formalities and procedures set forth in the operating agreement.

LLCs offer superior asset protection compared to other entity forms. The Florida Supreme Court in Olmstead v. FTC recently denied asset protection to a single-member LLC. This case could impact rulings in other states with similar charging order language in their LLC statutes.

Listen as our authoritative panel of tax practitioners discusses estate planning techniques to protect assets and preserve wealth for closely held family businesses and high-net worth individuals.

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Outline

  1. LLCs as an estate planning vehicle
    1. Advantage of LLCs over other entity forms
    2. Transfer of assets
    3. Minority and lack of marketability discounts
    4. Income earned out of the estate
    5. Appreciable assets
    6. IRS Code Section 2036 challenges
  2. LLCs as asset protection vehicle
    1. Advantages of LLCs over other entity forms
    2. Charging orders
    3. Impact of Olmstead v. FTC on single-member LLCs

Benefits

The panel will review these and other key questions:

  • What makes an LLC preferable to an S corporation or a trust for estate planning and asset protection purposes?
  • What estate and gift tax considerations make LLCs effective vehicles for estate planning purposes?
  • What pitfalls does IRS Code Section 2036 present and what steps can practitioners take to ensure the LLC can withstand IRS scrutiny?
  • Is the Olmstead case indicative of a trend toward disregarding single-member LLCs for asset protection, or is it an outlier?
  • What impact might Olmstead have on other states with similar charging order language as Florida’s LLC statute?

Faculty

Brian E. Hammell
Brian E. Hammell

Attorney
Cushing & Dolan

He is the Director of the firm’s Corporate Department. His practice concentrates in business law, employment law,...  |  Read More

James M. Duggan
James M. Duggan

Principal
Duggan Bertsch

Mr. Duggan's practice has concentrated principally on business and corporate law, and estate and wealth planning,...  |  Read More

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Audio

$297

Download

CPE Not Available

$297