My husband and I want to set up a trust to pass on our business and assets to our four children. We would also like to take care of our grandchildren. What recommendations could anyone give us in regards to setting up our estate for our grandchildren? We know this is a complicated question but perhaps you could give us a few pointers on what we should do.
Tax Professional Answers
What his intentions are is that as he and his wife pass on the trust to his family and that his daughter become the trustee with his two sons becoming the first and second alternates. When his daughter becomes trustee, she will have the authority to add additional members (grand children) to the trust, with the approval of the two brothers, as they become of age. It follows my client's wishes to have his family participate in the trust and that it pass down through the generations. Right now it is worth about $8 million but grows each year,
I formed an LLC for him two years ago and this year made the trust the owner of the LLC. Now he has the ability to purchase and sell using the LLC and yet all of the proceeds fall into the trust. All taxes are paid on the income whether interest or profit, some of which is capital gains and some is not. It is a bit complex tax wise, but as it stands there is no double taxation on any of the earned income.
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