Estate planning for S corporation stock and bank accounts. Appropriate wording for a will, Qtip-Qsst?

Question

Best way or will wording to transfer assets from an S corporation. There is only one owner/stock holder/board member. We know POD don't apply for LLC business accounts but they do for sole proprietorships what is the case of S corporations with one owner? What is the best way of trasfering the assets to our succesors. This is a corporation that mainly provides services by the owner therefore would not be sustainable as a company after death. Its assets would mainly be the bank accounts. Probate will delay access to them but nonetheless what wording should be used on the will. Should the spouse be made a shareholder? We read a little about QTIP or QSST but we are not too familiar with this concepts, can they be established just as wording in a will or the trust has to be establish as a separate documents. I don't know if I'm explaining myself, in short we want suggestions for the less taxable and fastest way for the descendant to access the assets of an S corporation.

Kenneth V Zichi · Answer

This question is FAR too complex to provide any meaningful guidance in a forum like this.  
 
For example, a Qualified Subchapter S-Corp Trust (QSST) is eligible to hold stock in an S corporation but there can be only one beneficiary of the trust and all income must be distributed at least annually. If you plan to continue to operate post death, this might be useful, but if not, there are other types of trusts and entity structures that may be more useful. QTIP trusts were far more useful in the days before the inheritance / gift tax deduction was portable between spouses, but now are not nearly so universally useful.  
 
I would strongly urge you to consider consulting with a local, knowledgeable estate planning attorney who can run through the pros and cons of each type of plan, and determine what makes sense FOR YOU.  
 
There is no 'one single answer' that is right for everyone. If you find someone who says something like 'everyone needs a trust' or 'always avoid probate at any cost' then you should take that as a clue to run in the other direction and seek other counsel.  
 
-- This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship.  
I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice

Sally Bergman · Answer

Mr. Zichi is correct.  Only a qualified estate planning attorney would be able to properly draft the provisions you suggest and then only after careful consideration of all the facts and your goals.  The cost to fix do-it-yourself estate plans more often than not far exceeds what the cost would have been to have an attorney do it correctly in the first place.

Q: Estate planning for S corporation stock and bank accounts. Appropriate wording for a will, Qtip-Qsst?