A real-world example
In 1953, Sam and Helen Walton put what little they had into a family limited partnership that included their four children. They called their partnership “Walton Enterprises.” From this partnership the well-known chain store, Walmart, evolved. Eventually, the partnership assets grew and included real estate, banks and a newspaper.
In 1985, the Walton family’s wealth was estimated to be $20 to $25 billion. But when Sam Walton died in 1992, he owned only a 10 percent interest in Walton Enterprises. He had used a family partnership to transfer assets that grew to over $18 billion to other family members without gift or estate tax.
To Sam Walton, the gift of a business opportunity to a loved one was much more valuable than a gift of cash. With a flat rate of 55 percent at the time of Sam Walton’s death, this advanced planning saved approximately $10 billion in estate taxes.
True wealth is not measured in money or status or power. It is measured in the legacy we leave behind for those we love and those we inspire.
Co-founder of National Farm Workers Association
The power of a Family LLC
Our clients frequently come to us searching for one solution, and a Family LLC often presents answers to questions they did not realize they had.
A Family LLC is a multifaceted legal entity that provides enhanced asset protection, increased savings on taxes, and robust estate planning. As a focal point of WMA’s financial and tax planning, many of the options we offer revolve around the precise use of an FLLC.
An FLLC is a powerful and valuable tool, providing benefits to our clients now and beyond their lifetime by managing, protecting, and ultimately transferring their hard-earned assets to their children and heirs.