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Taxation in Estate Planning - Assignment Example
Author : fschuppe
Finance & Accounting
Pages 5 (1255 words)
Taxation in Estate Planning Name: Professor: Course: Date: Taxation in Estate Planning Family limited partnership Family limited partnership (FLP) is a partnership where family business and accounts are centralized. It brings together different assets of the family into one family owned investment unit such that family members own shares…
The shares may be gifted to some family members in order to benefit from annual tax exception. It is important to note that any property owned in a Family limited partnership impact positively on estate tax exemptions. Applicable distribution period Under retirement plans, the applicable distribution period is pegged on the age of the retiree or that of the beneficiary and allows for the calculations of benefits accruing to each beneficiary. The internal revenue code provides for three tables which assist in finding the applicable distribution period. The first table is used only by the beneficiaries while the second table is used by account holders whose beneficiaries are spouses, who are 10 years junior in each, the last table deals with situations where there are no beneficiaries. Life expectancy is used in the calculations of applicable distribution tables. A special use valuation This is a design used in evaluating all assets in a successor’s gross estate where specific real property such as those used for farming or business is valued. ...