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Mark W Petro

Family Business Succession Planning


Business Succession Planning: Comparison of Alternatives

FLPPrivate AnnuitySCINGRATLifetime Gifts
Minimize Federal Gift TaxYes1Yes2YesYes2Maybe1
Minimize Federal Estate TaxYes3Yes4Yes4Yes4Yes3
Minimize Federal Income TaxYes5NoNoNoYes5
Minimize Federal Capital Gains TaxYes6NoYesYes6Yes6
Income for TransferorYesYesYesYesNo
Control by DonorYesNoNoYesNo
Creditor ProtectionYes7NoNoNoYes
  1. Value of gifted interest may be discounted, otherwise eligible for annual and lifetime gift tax exemptions
  2. To the extent fair market value of business does not exceed present value of annuity
  3. Shifts future appreciation to children
  4. But not to the extent payments are received and increase the transferor's estate value
  5. Shifts income to children
  6. But note that donees do not receive a "step up" in basis on transferred assets
  7. Limited partners generally have no personal liability for partnership debts
  8. Transferor may not live long enough to receive full payment

Investments and advisory services are offered through Lakeland Investor Services, Inc., a Registered Investment Advisor. 11873 Oakland Beach Road, Conneaut Lake, PA 16316, (814) 382-6681. Insurance services offered through Lakeland Insurance Services, LLC and Mark W. Petro, an agent licensed in PA, FL, MI, NJ, OH and VA. Neither Lakeland Investor Services, Inc. nor its agents and representatives can provide tax, legal or accounting advice. Clients should consult their own attorney or tax advisor about their specific circumstances.

This communication is strictly intended for individuals residing in the state(s) of FL, NJ, OH, PA and VA. No offers may be made or accepted from any resident outside the specific states referenced.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024.