Page 23 - 28 December 2012

gifting your buSineSS
If you’re like many business owners, you’d prefer to have your children inherit the result of all your years of hard work and success. Of course, you can bequeath your business in your will, but transferring your business during your lifetime has many additional personal and tax benefits. By gifting the business over time,
you can hand over the reins gradually as your offspring become better able to control and manage the business on their own, and you can minimize gift and estate taxes.
Gifting your business interests can mini- mize gift and estate taxes because:
• It transfers the value of any future apprecia-
tion in the business out of your estate to your heirs. This can be especially valuable if business growth is expected.
• Gifts of $13,000 per recipient are tax free under the annual gift tax exclusion.
• Aggregate gifts up to $5,120,000 (2012 figure) are tax free under your lifetime exemption.
• Partial interest gifts, as with GRATs, GRUTs, and FLPs, may be valued at a discount for lack of marketability or restric- tions on transferability.
gifting your buSineSS uSing truStS
You can make gifts outright or use a trust. You can even structure a trust so that you keep control of the business for as long as you want. You can establish a revocable trust, which
will bypass probate and allow you to change your mind and end the trust, or an irrevo- cable trust, such as a grantor retained annuity trust (GRAT) or a grantor retained unitrust
(GRUT) that can provide you with income for a specified period of time and move your busi- ness out of your estate at a discount.
gifting your buSineSS uSing a family limited PartnerShiP
You can transfer your business interest using another entity, such as a family limited partnership (FLP). An FLP is a limited partner- ship formed to manage and control a family business. You (and your spouse) can be the gen- eral partners, retaining control of the business itself and receiving income from the business, while your children can be limited partners.
By transferring the business to an FLP, you may be able to use valuation discounts and substantially reduce the value of the business for tax purposes by making annual gifts to the limited partners.
Disclaimers: This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all investors. The material is general in nature. Past performance may not be indicative of future results. Raymond James Financial Services, Inc. does not provide advice on tax, legal or mortgage issues. These matters should be discussed with the appropriate professional. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an independent broker/dealer, and are not insured by FDIC, NCUA or any other government agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal.
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& her connections from Kelly/Yearsley Equine LLC Breeders of MATABARI’s Dam HOLD ME NOW.
MATABARI si 87, $857,026
(Mr Jess Perry-HOLD ME NOW, Separatist)
Wins the $2,108,275 Los Alamitos $2 Million Futurity-G1!
Matabari’s victory in the Los Alamitos $2 Million reflects the quality of the Kelly/Yearsley Breeding Program!
Look for these 3 fabulous Yearlings out of STOLIFIED,
a half-sister to HOLD ME NOW, on Saturday, January 19 at the Heritage Place Winter Mixed Sale!
Hip #1028
Missus Teasdale •
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Contact Nancy Yearsley for further information: 310-489-2993
Visit Our Website at: www.kelly-yearsleyequine.com
Hip #1027
The Radio Flyer • Colt (PYC Paint Your Wagon-Stolified, Stoli)
Hip #1029 Stoli Time • Filly (Bigtime Favorite- Stolified, Stoli)
SPEEDHORSE, December 28, 2012 21
FINANCIAL FORUM