As a physician, you must always remember and practice the principle of “Controlling Everything but Owning Nothing”.
You will create a Family Limited Liability Company, which includes your spouse and children as members. All assets, real properties, investment properties, investment accounts and personal family bank accounts should be owned in the name of your Family LLC.
Benefits from this:
- It allows you to distribute ‘unearned income’ (such as interest, dividends, and capital gains) to lower tax brackets of your children above 14 years of age;
- You and your spouse will control those Family LLC assets for life without ownership in your own name and avoid potential Medical Malpractice Liability exposure (email us for Arvind Palav, MD’s validation letter);
- You and your spouse can gift the underlying value of your shares to your children, file the formal gift tax return Form 709 with IRS and avoid future estate tax problems. You can gift between you and your spouse $10.000.000;
- Enclose a copy of the form letter to instruct your banks and brokerage accounts to transfer your LLC name;
- We can assist you in transferring the real properties to the family LLC. You have to provide “Certificate of Incorporation” of your Family LLC and Taxpayer Identification Number (copy of IRS letter) assigned by Internal Revenue Service.
Regards,
Ramesh Sarva