Houston Estate Planning Attorney Whitney L. Thompson Explains the Importance of a Family LLC in Estate Planning

Harris, Texas -

Houston estate planning attorney Whitney L. Thompson releases a new article (https://www.wthompsonlaw.com/considerations-for-including-a-family-llc-in-an-estate-plan/) explaining the importance of a family LLC in estate planning. The lawyer mentions that there is a structural difference between a partnership and a corporation when it comes to limited liability companies (LLC). An LLC is well known as a hybrid entity that is beneficial for financial management, but an LLC can also be used as a powerful estate planning tool for similar reasons.

“As a result of estate planning, a Family LLC enables asset transfers without the heavy burden of gift or estate taxes to be done at discounted rates to children, grandchildren, and other family members. In addition to protecting assets during your lifetime and keeping them in the family, an LLC can lower taxes you and your family will owe,” says the Houston estate planning attorney.

The lawyer says that all fifty states recognize a Family LLC is a legal entity. However, each state also has its own regulations governing the formation, running, and taxation of each LLC. The owners of the LLC can receive protection from personal liability in the event of lawsuits, debt, or other claims. This protection helps them protect personal assets such as their home, bank account, and even vehicles.

Attorney Whitney L. Thompson adds that a financial threshold defines the need for an LLC to help lower estate taxes if the estate is more than $12.06 million in 2022. An estate planning attorney may be able to help an individual with their estate planning to lower the estate taxes and limit the probate process.

In the article, the lawyer says “A Family LLC is managed by the parents. The children or grandchildren hold shares in the LLC’s assets without management or voting rights. The parents can distribute, buy, sell, or trade the LLC’s assets but other members have restrictions regarding the sale of LLC shares, company withdrawal, or membership transfer. While gifting shares to younger members come under the gift tax, significant benefits permit you to gift more while lowering the tax value of your estate.”

Lastly, the lawyer emphasizes the importance of having a skilled probate attorney when dealing with matters involving the probate process. Having an experienced estate attorney may be able to help an individual understand their rights and help them prepare for the future of their loved ones.

About The Law Office of Whitney Thompson, PLLC

Attorney Whitney Thompson is an experienced family law attorney who helps clients deal with family law matters such as divorce or legal separation. Attorney Thompson also deals with guardianship, probate, and estate planning matters. As an experienced divorce lawyer, attorney Thompson and her legal team have helped families have a smoother divorce process and plan for their future more thoroughly. To schedule a consultation, call (281) 214-0173.