Using Family Trusts (CONT’D FROM PAGE 1)
In addition to saving you money, avoiding probate can also protect your business secrets. “You might not want your competitors looking up your will at the courthouse to see how much money or debt your family has,” says Sampson. Public records are also sometimes accessed by predators who try to victimize people who have inherit- ed money. “Having your property passed along under the
formation from prying eyes, guard family assets from crip- pling lawsuits and creditor claims, and even obviate turf wars by surviving children. (The traditional use of trusts to avoid estate taxes has become less important, since fed- eral tax law recently increased the estate tax exemption to $11.2 million for individuals and $22.4 million for married couples.) The good news is that trusts can be created by all sizes of organizations. “Even smaller family businesses can uti- lize trusts,” says John J. Scroggin, partner in Atlanta-based Scroggin & Company, a law firm active in business and es- tate planning ( scrogginlaw.com ). “The issue is driven not by size, in terms of revenues or assets, but by a desire for long term protection of a business.” How can you use trusts to help your own family busi- ness? For starters, consider using one to efficiently allo- cate assets to the younger generation. Although a will can do the same thing, a trust is more difficult to challenge and has the advantage of avoiding probate. “Probate can be expensive and time consuming,” says Sampson. “This is especially true in states such as California, Florida, Illinois, and New York, where probate is very complicated, or for businesses operating in more than one state.” In the latter case, survivors may have to deal with the complications required to satisfy the requirements of more than one set of probate laws.
terms of a trust avoids the creation of public records that result from court involvement.” Protect Assets Can a trust which allocates family business assets to the next generation be revocable? Yes, but that has inher- ent risks. Consider Sarah, who wants to do just that. Sar-
CONTINUED ON PAGE 26
We’ve got our customers covered… …with our fiberglass backed, boltless, full double-wide blankets and an extensive inventory of corrugated parts needed by virtually every box plant in the country. The innovator of the original fiberglass-backed knuckle locking anvil cover, Stafford is the industry’s go-to source for everything corrugated. TM
www.go2stafford.com 800-282-5787 IS THE MANUFACTURER OF STAFFORD ANVIL COVERS ®
24
www.boardconvertingnews.com
November 21, 2022
Made with FlippingBook Digital Publishing Software