Using a split-off in estate planning for a closely held business
Article Abstract:
A divisive reorganization of a closely held business such as a family owned corporation is a useful way to transfer interest from one generation to another without incurring a substantial tax burden for either. The split-off must meet certain conditions including being an active business that can demonstrate a business purpose for the split, with continuity of interest among at least one of the previous shareholders and the transaction not being a ruse to make a distribution. The transfer of new company stock for old company stock creates no gain for either party as long as no other property is sold. The effectiveness of this method is compared with similar techniques.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1993
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New planning approaches to cope with stricter Medicaid rules
Article Abstract:
Special needs trusts, annuities and transfer of the personal residence can be means of preserving wealth while qualifying for Medicaid, but restrictions placed on these methods by the Omnibus Budget Reconciliation Act of 1993 dictate careful planning and drafting. Special needs or Medicaid qualifying trusts are only exempt from Medicaid eligibility considerations when the trust funds were established by certain individuals for the benefit of a disabled person. The use of annuities is limited by actuarial guidelines for the annuitant.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1996
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Mediation: an effective method to resolve estate and trust disputes
Article Abstract:
The author discusses the use of mediation to resolve disputes concerning estates or trusts. Explanatory and practical information is provided.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 2000
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