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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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the other area I am trying to figure out is a little complicated

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the other area I am trying to figure out is a little complicated and deals with some estate planning.


Hus and Wife, wife passed and two trusts vs the orignal one.

It this same RE were 100% allocated to the Wife, it's held in an LLC, the owner of the LLC goes to the 4 kids. Then sales...it should benefit from step-up and the kids (adults) k-1s distribution the sale, would have zero tax liab + no tax, at all, right.

But since, I am still alive - can I "pass on" the RE by just allocating it all to Her trust, which then allows the owners to be kids - who get the step-up?

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.


 

Stephen E. Grizey :

I'm not sure I understand your question or what you're trying to do. I'm re-reading your question.


 

Stephen E. Grizey :

Are the parties still alive? What exactly are you trying to do? Give me the actual facts & tell me what you are trying to do.


 

Customer:

Goal - Sell $5,000,000 RE and get step up for heirs + no tax


Hus still alive,wife passed


the RE is held in LLC


H can allocate the assets freely


If the RE in the LLC, LLC allocated to W trust and the RE is old out, and the adult kids get all process no tax


 


 

Stephen E. Grizey :

Who owned the LLC when your wife died and what date was that?


 

Stephen E. Grizey :

One significant problem we have right now in estate planning is that we don't know what the law is going to be beyond 2012.


 

Customer:

The LLC was intended to be owned by the signal trust before the death. But paper work was never finished so the LLC that ownes the RE


could be owned by the orginal trust or allocated as an LLC to her trust.

Stephen E. Grizey :

What is the signal trust?


 

Customer:

I am sorry, I meant the first, or orginal trust

Customer:

Revocable (living trust) - until first to die

Stephen E. Grizey :

What are the terms of the original trust? Was it a living trust of either your or your wife?


 

Customer:

yes, the initial trust was a revocable trust until first to die, the her trust springs up

Stephen E. Grizey :

So the original trust was never funded with the LLC shares?


 

Stephen E. Grizey :

Who owned the LLC before the trusts were involved?


 

Customer:

The LLC was created to hold the RE, the RE was orignially owned by a "C" corp which deeded it to the LLC


 

Stephen E. Grizey :

Were both you & you wife members of the LLC? Anyone else?


 

Customer:

No one else was a member of the LLC

Stephen E. Grizey :

You & your wife? What was you wife's date of death?


 

Customer:

This year, March 12th - 2012

Stephen E. Grizey :

Did she have a pour over will? ie. that left everything to her trust?


 

Customer:

yes

Customer:

hello - I have just recieved a call I must take, is there a way to pick up at another session?


Againk thanks you

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