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Leave a Legacy

RSS By: Kevin Spafford, Legacy Project

Kevin Spafford is Farm Journal’s succession planning expert for the Farm Journal Legacy Project.  He hosts the nationally-televised ‘Leave a Legacy’ TV, facilitates an ongoing series of workshops for farm families across the U.S., and is the author of Legacy by Design: Succession Planning for Agribusiness Owners.

A Simple Transfer of Nonbusiness Assets to Inactive Children

Jul 13, 2010

From Legacy Moment eNews (July 09, 2010)

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Jane, a single mother and agribusiness owner, owns 50% of Garden Products Co., a general partnership. Her son Sam owns the other 50% and is active in the business. Jane’s daughter, Eleanor, is a stay-at-home mom with three children of her own.

Jane would like to transfer her 50% interest in the business to Sam and provide some form of equitable assets to Eleanor at her death.


Jane's current assets are:
Cash
$ 200,000
Investments
500,000
Personal residence
300,000
Interest in Garden Products Co.
650,000
Total assets
$ 1,650,000

From her estate, Jane may leave her entire $650,000 interest in the business to Sam and still have enough other assets to leave an equal distribution to Eleanor. In fact, after transferring the $650,000 in business assets to Sam, her estate still has $1,000,000 in other property. Jane may equalize the distributions by leaving $650,000 to Eleanor and then dividing the remaining $350,000 between the two children.
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Leading the Change – Legacy Project Workshops
The next series of Legacy Project workshops are scheduled for Lincoln, Neb., on July 20; Des Moines, Iowa, on July 21; and Champaign, Ill., on July 23. Sign up online or call the Farm Journal Events Hotline for more information: (800) 909-3681.

 

 

    

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COMMENTS (3 Comments)

Anonymous
Don't fool yourself folks, equal distribution of your wealth won't give you peace of mind when you pass away because you will be DEAD! If you want peace of mind while you are still alive maybe you should think about what happens to YOU when you die!
Find out how Jesus saved your soul from eternal damnation by dying for your sins. Please feel free to try to explain to me how the family fortune is more important than your soul!
7:29 PM Jul 14th
 
Anonymous
If you want a really good plan, try to figure out how to take your fortune with you when you kick the bucket.
4:04 PM Jul 14th
 
 
 
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