Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Estate Planning -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (10)	4/1/1998 6:45:00 PM
From: Taxboy	Respond to of 36

In California, custodial accounts can be disposed of by the beneficiary at age 18. However, by being the GP, although your kids can sell their limited partner's interests at 18 to third parties, they probably will not be able to since the interests are not truly marketable. However, the second part of the strategy is not the best. First, if your kids need cash for education, you can just cut the check directly to the school and this will not even count towards the $10,000 annual exclusion (direct payments to educational providers are not part of the $10,000). Also by buying their interests, you leave yourself with more of the interests, therefore increasing your taxable estate. You should set up a "FLP," I can refer you to other sites if you email me at neal99@yahoo.com. Also, you will want to take advantage of "discounts" when you make gifts, which will probably require getting an appraisal of partnership intersts. Let me know if you need more info.