LLCs in Estate Planning: Tax Law Implications, Structuring Agreements, and Corporate Transparency Act Compliance

Barry E. Haimo | Haimo Law

Barry E. Haimo, Esq. is a distinguished attorney whose leadership at Haimo Law is redefining the traditional attorney-client relationship. Unlike the norm, Barry’s approach emphasizes the importance of building genuine, lifelong connections with his clients, going beyond the standard legal transaction. This ethos is deeply embedded in the culture of Haimo Law, reflecting a commitment to the ideal law firm and attorney-client experience. Since establishing his practice in Plantation, Florida, in 2010 and expanding to Port Jefferson in Suffolk County, New York, in 2018, Barry has made education a cornerstone of his client interactions. He believes that empowering clients with knowledge allows them to make informed decisions, understanding not only the legal aspects but also how they align with personal values and objectives.

Barry’s focus on estate and business planning covers a broad spectrum, from assisting clients with modest means to those with significant wealth and complex tax planning needs. His expertise encompasses probate, trust administration, and asset protection planning, as well as addressing the nuances of business life cycles, including succession and exit planning. What sets Barry apart is his commitment to understanding his clients’ broader life contexts—their goals, families, businesses, and the unique challenges they face. This holistic approach enables him to provide tailored advice that extends beyond legal boundaries, addressing sensitive issues and complicated family dynamics with a unique and refreshing perspective.

In addition to his legal practice, Barry E. Haimo is an entrepreneur at heart. He has started and sold a company, launched innovative software to modernize estate planning, and frequently contributes his insights as a guest speaker on podcasts and webinars. His entrepreneurial spirit, combined with his legal expertise, makes him a valuable consultant, director, and business advisor to various companies. However, Barry’s favorite aspect of his practice remains the personal interaction with clients—understanding their aspirations, fears, and the intricate details of their lives. This deep connection with clients is what drives Barry’s strategic, outside-the-box thinking and his exceptional bedside manner, making him not just a lawyer but a trusted counselor and advocate in estate and business matters.

Barry E. Haimo’s approach to law is a testament to his dedication to providing more than just legal expertise; he offers a partnership built on trust, understanding, and a shared journey towards achieving clients’ goals.

I. Introduction to LLCs | 1:00pm – 1:12pm

• History/Evolution
• Members
• Management
• Taxation
• Limited liability
• Governing documents

II. My top reasons I love LLCs | 1:12pm – 1:24pm

• Flexibility flexibility flexibility

III. Operating agreement | 1:24pm – 1:36pm

• Key provisions
  • Ownership
  • Management
  • Transfers
  • Buy-sell
  • Conflict resolution
  • Meetings
  • Allocations
• Pitfalls
• Applications
  • FLPs
  • Operating businesses
  • Real estate
  • Investments

IV. Asset protection | 1:36pm – 1:48pm

• Inside and outside creditors
• Charging order
• TBE
• POD

V. Anonymity | 1:48pm – 2:00pm

• Benefits
• Disadvantages
• Forum selection

Break | 2:00pm – 2:10pm

VI. Corporate Transparency Act | 2:10pm – 2:25pm

• BOI reports
• Compliance
• Exceptions
• Complications
• Updates

VII. Succession planning | 2:25pm – 2:40pm

• Equitable ownership
• Management transition
• Incentives

VIII. Estate and gift tax planning | 2:40pm – 2:55pm

• Basis adjustment
  • Step-up
  • 754
• FLPs – Beneficial enjoyment and control
• Shifting wealth
  • New investments
  • Sales
  • GRATs
• Economic substance
• IRC 1202
• Trusts as owners of LLCs
  • Grantor v. non-grantor trusts
  • Important considerations
    1. Trustee/trust agreements
    2. Permitted transfers
    3. BOI
  • Taxation – post-mortem s-corps

IX. Common pitfalls | 2:55pm – 3:10pm