Thinking of adding the business to family trust

Assignment Help Financial Management
Reference no: EM131944509

Josh has a demolition business that is heavily leveraged. He currently has an inter-vivos trust and has been thinking of adding the business to the family trust. The business is currently a sole proprietorship. Josh was recently diagnosed with lung cancer and his doctor believes it is highly probable that at best, Josh has six months to live. He has a wife that has always been a stay at home mother for their four children (ages 3 to 21). He has no other close relatives.

He has contacted you for advice on the transferring the business to the trust and making his wife the trustee. What is your recommendation and why?

Reference no: EM131944509

Questions Cloud

No debt and no excess cash reserves : Value the shares assuming that the FCF's occur at year end. Houda has no debt and no excess cash reserves. What is the share price?
Proprietorship and partnership with seven partners : Discuss the possibility of agency problems in a business that is a (a) proprietorship, (b) partnership with seven partners,
Accumulate an equity interest in the property : If you rent a home rather than buy one you will not accumulate an equity interest in the property.
Currency with others on the world currency market : One component of learning about another country or region is to understand the relationship of its currency with others on the world currency market.
Thinking of adding the business to family trust : Josh has a demolition business that is heavily leveraged. He currently has an inter-vivos trust and has been thinking of adding the business to the family trust
Facing in making financial and strategic decisions : Elaborate on some of the complex issues health care administrators today are facing in making financial and strategic decisions.
Loan without compensating balance : The choice between a $310,000 loan with a $10,000 compensating balance and a $300,000 loan without a compensating balance.
Is the conventional mortgage better than the lease : The law firm could finance 80% of the purchase price with a conventional mortgage at a 7% interest rate. Is the conventional mortgage better than the lease?
Principal portion and interest portion of mortgage payments : Both the principal portion and interest portion of your mortgage payments are deductible from your income for Federal Tax calculations.

Reviews

Write a Review

Financial Management Questions & Answers

  Java stop limited jsl is a private corporation with

java stop limited jsl is a private corporation with corporate offices at 10 bay street suite 409 intoronto. it was

  The wear-and-tear cost of operating your car

You need to get gasoline for your car. You can drive ten miles (round trip) to a gas station on the outskirts of town and save 12 cents per gallon on the price of gasoline. If gasoline costs $3.4 per gallon and your car gets 31 miles per gallon for i..

  Requires an initial installed equipment cost

A company is considering a 3-year project that requires an initial installed equipment cost of $16,000. The project engineer has estimated that the operating cash flows will be $5,000 in year 1, $6,000 in year 2, and $8,000 in year 3. If the tax rate..

  What is the value of its current stock price

Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 14% for the next three years and then a constant rate of 5% thereafter forever. What is the value of its current stock price? Assum..

  What do you think of the regulatory response to this crisis

What do you think of the regulatory response to this crisis. Response of Financial Regulation and Too-Big-To-Fail and Future Regulation. Sections on Conventional Monetary Policy Tools, Nonconventional Monetary Policy Tools), Readings on Negative Inte..

  Firm needs to plow back its earnings to fuel growth

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. If the required return on this stock is 11 percent, what is the cu..

  The short run phillips curve with the unemployment rate

Explain whether the short-run Phillips curve with the unemployment rate on the horizontal axis will shift, and if it does shift, in which direction it will shift:

  Long-run growth rate can firm be expected to maintain

what long-run growth rate can the firm be expected to maintain? If this plan is implemented, what must the firm's required return be?

  Mexican peso appreciated ot depreciated against the dollar

By how much has the Mexican peso appreciated ot depreciated against the dollar over this 10-year period?

  Suppose the real risk free rate and inflation rate

Suppose the real risk free rate and inflation rate are expected to remain at their current levels throughout the forceseeable future. Consider all factors that affect the yield curve. then identify which of the following shapes that us treasury yield..

  Company is considering infusing in new mining project

Iangshan mining company is considering infusing in a new mining project. Calculate the projects NPV

  What is the annual cost of the cheapest machine

What is the Annual cost of the cheapest machine? Can you use the AEW method?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd