As an Asset Protection Plan and Estate Planning Attorney, Los Angeles Attorney Bruce Givner is often called upon to assist business owners with asset protection and estate planning. "Too often, business owners get so busy running their businesses, they forget to protect their businesses," said Givner who practices throughout Los Angeles County. "Here are two tips for business owners to protect their assets and estates," finished Givner.
First, for business owners who have accumulated significant wealth, creating an asset protection plan is an important part of good estate planning. An owner interested in asset protection should consider transferring assets to some type of irrevocable trust, and forming new business entities including limited partnerships and family limited liability companies. Asset protection planning integrates well with estate tax planning, especially in 2012 when there is a $5.12 million per person gift tax exclusion. Business owners should also consider a buy/sell agreement that specifies how the interests in a business are handled if a business owner becomes disabled, deceased, retires, or sells his or her shares.
Second, business owners should create estate planning vehicles which ensure that at their death their interest in the business passes to the right individual(s) and not, by default, to heirs selected by intestate laws. Owners typically prefer that their stake in the company pass to their business partners. However, should they die intestate or fail to create business succession plans, the spouse or children may become the new owners. Business owners with partners should buy life insurance for each partner. Combined with a buy/sell agreement this can ensure upon a partner's death the business has enough funds to buy the deceased partner's business interest.
"Preparation is the key to proper asset protection and estate planning," finished Givner.
Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles County. Call Los Angeles Income Tax and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.
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Since 2009 the IRS has generated more than $5 billion in tax revenue through the Offshore Voluntary Disclosure Program. This program was designed to encourage tax evaders to come clean by offering reduced penalties and the promise of avoiding jail. In this program, taxpayers are required to disclose all foreign bank accounts and pay back taxes. The current penalty is 27.5% of the highest aggregate balance in the offshore account. This penalty has increased from 25% in the 2011 version of the program.
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