Marital Deduction
Categories: Tax, Incorporation
Marriage comes with a lot of benefits. We have someone to laugh and cry with, we have someone to potentially build a family with, and we have a built-in date to those painful office parties. And if that wasn’t enough, another benefit comes in the form of what we call a “marital deduction”: spouses can pass unlimited amounts of wealth back and forth without having to pay any federal estate taxes.
Most of the time, we see this come into play with wills, trusts, and other death-related money stuff. If, for example, we leave our estate to our spouse when we pass, he or she doesn’t have to pay estate taxes on the amount, and they also don’t have to wait for the probate process to clear before they can access the account.
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Finance: What is a partnership?23 Views
finance a la shmoop. what is a partnership? a marriage. joint ownership
of a bar. when two dudes put up half the dough each to share 50/50 in a time [two different people offer money for keys]
machine. well a partnership is just the merging
of two individuals in doing a given business deal or setting up a business
structure. if both are owners then both are liable for you know bad things
should they happen. partnerships carry a lot of financial danger if one partner
goes off the rails and decides to commit fraud in the name of the company or that
evil partner enters into a stupid company bankrupting contract, well then [bad contract sold to unsuspecting victim]
both parties pay for it. the innocent partner pays just as much in the form of
whatever financial damages befall the partnership as the evil one, and
partnership liabilities include personal assets if the partnership is structured
like a general partnership with limited partners having no personal liability so [ liability structures defined]
for all the good that a partnership can have it can get bad and ugly so you got
to enter partnerships carefully. spend lots of dough on lawyers before you set
it up so you don't have to after. [money exchanged for partnership contract ]