Estate and Business Planning for the Farm and Ranch Family - Use of the LLC - Part 2

Roger A McEowen ( August, 2020 )

Summary

For a single-member LLC that is a disregarded entity, what does the single-member of the LLC own? Is it the interest in the LLC or the underlying asset(s) of the LLC? If the entity is respected as an entity separate from its owner, can valuation discounts for the owner’s interest in the entity be achieved for federal estate and gift tax purposes? If so, that’s a big planning (and tax saving) opportunity. How a single-member LLC as a disregarded entity is treated for federal estate and tax purposes – it’s the topic of today’s post.

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