2013 might be a good year to gift your dealership

Description

Abstract: The American Taxpayer Relief Act of 2012 (ATRA) finally brought some certainty to estate planning — so dealers might now consider this a good time to gift ownership interests. But this article points out actions to be taken before coming to any conclusions. It’s necessary to look at one’s tax position and the dealership’s value. Dealers who want to retain control can consider a family limited partnership (FLP) or family limited liability company (FLLC). A sidebar discusses the benefits of a grantor retained annuity trust (GRAT).