Description
Estate Planning and Trusts - Walmart
III. Estate Planning
A. In terms of minimizing tax liability, how would estate planning differ from a partnership to a corporation?
B. For estate planning purposes, what are the advantages of setting your business up as a corporation versus a partnership? Defend your response.
C. Describe your company’s succession plan and whether or not it aligns with your company’s vision.
D. Based on your responses, what estate planning strategy would be most effective in minimizing tax liability? Why?
IV. Trusts
A. Draw a conclusion about the purpose for the company’s trust based on the research of your company.
B. Why would a small business owner want to set up a trust and how could it be used for estate planning purposes?
C. Evaluate the similarities and differences between trusts and corporations. In an attempt to protect income, which would be most suitable for a company?
Guidelines for Submission: Paper must be submitted as a 2-to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Source should be cited according to APA style.
Explanation & Answer
Attached.
Running head: ESTATE PLANNING AND TRUSTS – WALMART
Estate Planning and Trusts – Walmart
Institutional Affiliation
Date
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ESTATE PLANNING AND TRUSTS – WALMART
III.
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Estate Planning
A. How estate planning differ from a partnership to a corporation in terms of minimizing
tax liability
In partnerships, taxes are paid on the profits made while corporations are required to pay
both federal and state taxes. The legal structure of corporations and partnerships is different
which has an impact on their tax liabilities in estate planning. Offering lifetime gifts of business
interest has been made easier in limited partnerships and corporations which gives parents the
ability to shift a portion of their assets from their estate to their descendants (McCouch, 2014).
This is beneficial to them in minimizing their tax liability since their children will be placed in a
lower tax bracket and thus they will end up paying lower taxes while their parents will also pay
lower taxes since they will also be placed in a lower tax bracket.
B. The advantages of setting a business as a corporation versus a partnership for estate
planning purpose
Setting up a business as a corporation is beneficial over ...
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