Because this technique involves a life annuity, no money will be owed to the estate upon your death. Therefore, the remaining value of the business is not considered as part of your estate provided the annuity is appropriately structured. The promise to pay must be unsecured. Because the payment is in the form of a life annuity, the purchaser bears the risk that payments may continue longer than expected. Develop a gifting program.
Outright gifts continue to be an excellent strategy for passing on family wealth.
Such gifts also include gifts of property. This technique can be used to pass on shares of the family business, transferring appreciation and ownership to the next generation. Through an annual gifting program, you and your spouse could transfer a significant portion of your holdings without incurring one penny of gift and estate tax. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the facts of the particular situation.