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Member
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Last Login: 10/30/2007 4:43:50 PM
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| Since CPA's are licensed by the state and CPA firm owners must be licensed, the ownership interest in a CPA firm cannot be held in the name of the partner's living trust. The partnership agreement calls for the distribution of book capital to the surviving spouse and the pay out of unfunded retirement (buy out) over 10 years to the surviving spouse. FYI, the ownership capital and retirement buy out are community property. Do these assets need to be probated if not in a living trust? How do you get them into the trust? Should the trust be named as the beneficiary in the partnership agreement? Do they by-pass probate if the partnership agreement has designated beneficiaries? Maybe I'm making more out of this then I need to, but I just want to make sure my family has no surprises.
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Last Login: 11/2/2007 3:48:19 PM
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| Probate is only needed to transfer legal title to assets that do not otherwise transfer at death. A trust allows legal title to transfer because the successor trustee has the power to sign deeds, checks, and other transfer documents for assets titled in the name of the trust. So no probate for those. A Pay of Death Account at a bank allows legal title to transfer too, on presentation of a death certificate and ID, the bank turns over the cash. Life insurance and annuities too. No probate needed. Your post death interest in the CPA partnership may be transferred just like a pay on death account. You name the beneficiary of your interest in the partnership agreement, and the other partners agree to deliver the assets to the beneficiary of your naming, after you die. You may certainly name your trust as the beneficiary. Good luck and long life, Bradley S. Hindley, Business and Estate planning attorney. P.S. Don’t forget to remember .... The information I post on this forum is very general information. Nothing I post shall be construed by any reader as legal advice or as forming an attorney-client relationship. Specific legal counsel on your situation may only be obtained by you consulting your own personal lawyer.
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Member
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
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you might check with your attorney to see if an assignment can be used. either specific or general. or general with specifics in it...
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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