Estate Planning Secrets Business Owners Can't Afford to Miss
Strategies to Minimize Estate Taxes
One of the significant concerns for business owners is the potential tax burden on their estate. Fortunately, several strategies can help mitigate these costs. Gifting assets during your lifetime is a common approach, as it reduces the size of your taxable estate. The annual gift tax exclusion allows you to transfer a certain amount to any number of individuals each year without incurring tax3.
Additionally, setting up a family limited partnership (FLP) can be an effective way to transfer business interests to heirs while maintaining control over the business. This strategy often results in valuation discounts, thereby reducing estate and gift taxes4.