When you do your estate plan, you should also do your “lifetime” plan as the same time.
What is a lifetime plan?
According to a story in the Naples Daily News, it includes such considerations as how to maintain your lifestyle for the rest of your life, succession planning for your business, and a plan to deal with what happens if one of your kids gets divorced.
The article suggests protecting you and you spouse by transferring residences to a “qualified personal residence trust” or holding title 50 percent in your revocable trust and 50 percent in your spouse’s trust.
Investments should be held in a family limited partnership, it says.
To protect your kids, you should never leave property directly to a minor. If your kids own stock in your closely held business, make sure you have a buy/sell agreement so it is certain the business stays in the family.
Also, it says, your business should be incorporated rather than be run as a sole proprietorship or general partnership.
If you have questions about estate planning, feel free to contact us for a consultation at (626) 696-3145.
