Q: If I sell my company in TX and want split $ in thirds & gift to my two children, how do I pay the least taxes? 3 trusts?
60 year old company, appraised at $9m
If all proceeds go into my one trust and then I distribute it, will the taxes be the same as putting proceeds into 3 separate trusts?
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A:
When planning to sell your Texas company valued at $9 million and distribute the proceeds to your children, it's important to consider the tax implications carefully. Splitting the funds into thirds and using trusts can be an effective strategy to manage taxes and ensure your wishes are fulfilled.
Establishing trusts can help minimize estate and gift taxes by taking advantage of annual exclusion amounts and the lifetime gift tax exemption. You might consider setting up separate trusts for each child, which can provide control over how and when the assets are distributed. This approach can also offer protection from creditors and help manage the assets responsibly.
Additionally, exploring strategies like the use of family limited partnerships or installment sales may further reduce tax liabilities. It's crucial to work with a qualified estate planner or tax advisor who can tailor these strategies to your specific situation and ensure compliance with all tax laws. Proper planning can help maximize the benefits for your children while minimizing the tax burden.
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