Immigrating to the United States is particularly important for many people to consider tax avoidance. Here, we introduce how to cleverly avoid inheritance tax in the United States.
Americans primarily use two methods to avoid inheritance tax: a shelter trust and a family limited partnership.
The shelter trust effectively addresses the uncertainty regarding which spouse passes away first; it establishes a trust for each spouse, so that when one passes away, that portion of assets transfers into the children's trust. This way, the tax exemptions for both spouses are not wasted. Families establishing a family business can set up a family limited partnership, preferably formed during middle age, with the parents acting as general partners, gradually transferring assets into the children's accounts, such that, ultimately, each child has a small share. For Chinese families interested in purchasing commercial properties, utilizing a family limited partnership to transfer assets is highly suitable.
