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Preserve Life Style and Control

To many people, estate planning is the process of giving away much of what you have spent a lifetime building and accumulating. The process means losing control. 

In our view, a main objective of planning is to preserve control of the estate and protect the current life style so that planning one's estate is not feared or seen as the process of giving everything away. Yet, to the extent that one maintains full control, assets are subject to greater tax than when some control is relinquished. So, how is the dilemma resolved? 

A simplified example of a strategy that transfers value without transferring control is the use of limited partnerships and/or limited liability companies, depending upon state law.  These entities can be structured so that there are both controlling and non-controlling ownership units.  Controlling interest is retained or moved to another entity over which control is held. Thus, ownership of value can be transferred without relinquishing control. 

The example and explanation above is greatly simplified and before attempting to implement it, legal counsel should be consulted. For more information, contact Kimball R. Doxey at 800-765-6383.


This material is intended to provide general financial education and is not written or intended as tax or legal advice and may not be relied upon for purposes of avoiding any Federal tax penalties.  Individuals are encouraged to seek advice from their own tax or legal counsel.  Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.  This material is for informational purposes only and is not an offer to sell or a solicitation to buy any securities.