The majority of U.S. wealth is held in the form of family-owned businesses. This case study compares the tax and cash flow economics of selling a C-corporation by two common methods -- stock sale and asset sale followed by liquidation -- and then illustrates how these two methods can be incorporated with a charitable remainder unitrust.  MORE »

Privately-held business forms include sole proprietorships, general and limited partnerships, C-corporations, S-corporations, and recently created limited liability companies. In the context of charitable gift planning, the diversity of business forms and the rules that apply to each regarding taxation, ownership, transferability, liquidity, marketability, and income producing capability place them, as a category, at the pinnacle of complexity. This memorandum focuses on outright transfers of privately-held business interests to public charities and private foundations, as well as transfers to charitable remainder trusts and charitable lead trusts.

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Passing the family business intact from one generation to the next is one of today's most challenging estate planning problems. And trying to get the company over to one child, who is active in the business, while maintaining proportionate distributions to others who are not is more difficult yet. In this edition of Gift Planner's Digest, Troy, Michigan attorney Salvatore LeMendola demonstrates how the layering of sophisticated charitable and non-charitable planning techniques can help keep the family business in the family.  MORE »

Since January 1, 1998, charities have been able to own Subchapter S stock. But how should they own it? In this edition of Gift Planner's Digest, Laura Peebles, tax director at the national office of Deloitte & Touche, challenges the conventional wisdom of corporate ownership and presents tax saving alternatives for recipient organizations.  MORE »

Nearly half of the nation's corporations are classified as Subchapter S corporations. Prior to 1996, charitable organizations were not permitted to be shareholders of S corporation stock. However, with the enactment of The Small Business Job Protection Act of 1996, new opportunities have been created for small business owners to make gifts of what in many cases may be the most valuable asset they own.  MORE »