Reference no: EM132594998

Case Study Information

Nadine has a highly successful business. She has a husband Peter and three young minor children, Jagmeet, Sumeet, and Daniela. She started her business from scratch, and it is now valued at about $1 million, and hopefully it will continue to grow. In addition, she has other capital assets that are producing taxable income and will also continue to appreciate.

Nadine would like a plan or recommendations to do the following:

Question 1. Have the future growth of the business accrue to her family members.

Question 2. She is also considering having the ability to transfer all or part of her taxable income to her family members and charities that will ultimately be the beneficiaries of the estate.

Question 3. As her capital assets exceed her tax cost, she would like to avoid any immediate capital gains taxes.

Question 4. She would like to retain control over the use of the property until her time of death.

What are Nadines's options for the four points / issues above?

Question 5. Then choose the solution that meets all four points / issues above.