Legal-Ease: Tax savings for people over age 70 1/2

When deciding the amounts of deductions on taxes, taxpayers have two options to consider. First, you can itemize deductions, which is often done by farmers, small business owners and those who give a lot to charities. The other method for deductions is to simply deduct a flat amount each year. That’s referred to as taking […]

Legal-Ease: Find win-win-win: avoid taxes, probate and nursing home expenses

While some people seem to believe otherwise, it is not necessary for there to be a loser for every winner. With cooperation, both sides can often achieve success. 

As people get older, many people want to achieve three goals: avoid taxes, avoid probate administration, avoid nursing home expenses. Various estate planning structures exist to allow a win in all categories.

With the right planning, minimizing heirs’ eventual capital gains tax obligations is achievable. A properly organized trust can also help avoid probate. Nursing home tools can also be organized to avoid probate and help the family avoid capital gains tax later. 

Legal-Ease: LLCs and taxes

Limited Liability Companies, or LLCs, are often established by business owners to protect assets and limit liabilities. Most often when an LLC is organized correctly, net taxes are not typically increased or decreased. But, there are some exceptions to this. 

Taxpayers can decide to have their LLCs taxed like “S corporations” as opposed to “C corporations.” “S Corporations” are slightly less cumbersome in tax administration than “C Corporations.” Taxpayers can also decide to have their LLCs taxed like partnerships if there is more than one owner. If the LLC only has one member, then it can be taxed as a sole proprietorship. Most business attorneys will consult with a client’s tax preparation professional before advising on how an LLC should be taxed.