In the context of family-owned businesses, which of the following can be used to minimize estate taxes?

Question

Quizplus · Accepted Answer

Family limited partnerships can help minimize estate taxes by allowing the owner to transfer ownership to family members in exchange for limited partnership interests, which are valued at a lower rate for tax purposes. This can reduce the value of the owner's estate and therefore reduce the amount of estate taxes owed. Buy-sell agreements and formal succession planning may also be useful for family-owned businesses, but they are not specifically designed to minimize estate taxes. Selling stock to outsiders is not necessarily a viable option for family-owned businesses that wish to keep the business within the family.

In the Context of Family-Owned Businesses, Which of the Following