Margarita Calpotura Business Law Blog on Lawyers.com

On November 17, 2011, Miller Law Group hosted a roundtable panel discussion regarding business and family wealth strategies. 

At the discussion, Miller Law Group welcomed RJ Kelly, Founder and President of Wealth Legacy Group, who shared his thoughts about the payment of taxes being a form of “involuntary philanthropy.”  According to Mr. Kelly, as families acquire wealth, a significant portion of that wealth must be relinquished to the government to support the general welfare of the country.

However, with the proper business and family wealth strategies, the amount of this “involuntary philanthropy” can be reduced, thus increasing the amount transferred to heirs and intended beneficiaries.

An important business and family wealth strategy for families that have substantial wealth in the form of businesses and real estate is to integrate business entities into their estate plans.  Transferring ownership of the businesses and real estate into business entities such as limited partnerships, limited liability companies, and corporations, can usually allow families to transfer economic value from their taxable estates without compromising their control over their assets.

Another important business and family wealth strategy is asset protection.  Transferring ownership of the businesses and real estate owned by the family into separate business entities no only provides tax benefits for the family, but it also provides statutory liability protection for the family.  This means that should the business get sued (for example by a visitor who injured himself on the business’s property), the damages the claimant can recover, in most cases, is limited to the business’s property, and would not extend to the other property owned by the family.    

Business owners and high net worth families need a team of advisors to optimally integrate business strategies with family wealth strategies.  The California business attorneys at Miller Law Group, a Palo Alto based law firm specializing in asset protection and wealth preservation, provides such strategic positioning services to its clients by working with and offering its clients access to, specialty resources and other professionals and organizations that maintain Miller Law Group’s high standards. 

Each situation varies and knowledgeable counsel should be consulted to help formulate these strategies and navigate these complex issues.

For questions, comments, or further information about protecting and building both personal and business net worth, contact The Miller Law Group, P.C., at 650-566-2290, or go to http://www.millerlg.com