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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