Comparison chart of Irrevocable Trust, Revocable Living Trust, Non-Grantor Trust, LLC, Sub-S Corp, Family Limited Partnership, Limited Partnership, General Partnership
|Feature / Benefit||Ultra Trust®1||Revocable Living Trust2||Domestic Non-Grantor Trust3||Limited Liability Co. LLC4|
|Asset Protection||YES||NO Protection, NONE||YES||YES|
|Eliminate Estate Taxes||UNLIMITED||NO||UNLIMITED||NO|
|Defer / reduce Capital Gains Taxes||Possibly, under certain conditions||NO||VERTEX TRUST ® up to 20 years||NO|
|Defer / reduce Income Taxes||NO||NO||YES, if combined with international structure||NO|
|Form 1040 income tax benefits||YES, Designed for asset protection, but Interest on mortgage and Real Estate Tax pass-through as a tax deduction to your form 1040. If it's a business, all underlying income and expenses are passed through.||NO||YES|
|Comments:||Designed to eliminate probate. DOES NOT eliminate estate taxes; ABSOLUTELY NO asset protection, nothing more than an extension of your will. In my opinion: a sham perpetrated on you by unqualified professionals.||Designed to defer all capital gains taxes when combined with international structure (see deferral of Capital Gains)||Replaces Sub "S"; LLC Entity of choice for all new business entities; strongest asset protection for business ( see footnote A & B)|
|Feature / Benefit||Sub "S" Corporation5||Family Limited Partner- ships||Limited Partner- ship6||General Partner- ship7|
|Asset Protection||Courts have rendered this structure worthless||General Partner exposed for 100% of assets||General Partner exposed for 100% of assets||NO Protection, whatsoever. EACH PARTNER is exposed to the liability of ALL his other partners. You should NEVER do business as a General Partnership. Worse than Sole Proprietorship.|
|Defer / reduce Capital Gains Taxes||NO||possibly||NO||NO|
|Defer / reduce Income Taxes||NO||possibly||NO||NO|
|Form 1040 Income tax benefits||NO||NO||NO||NO|
|Comments:||The White Elephant.
Professionals no longer regard this method of ownership as an asset protection device or tax efficient device.
He who "owns" the stock owns the company; NO asset protection for the shareholder; officers, or directors. Too many restrictions on who may own the Sub Chaper "S" stock for efficient tax pass-through.
|Designed to slowly leave your company to your children; general partner has NO asset protection under attack by IRS ( See footnote A & B )||General partner has NO asset protection; he who controls the GP owns the company ( See footnote A & B )||it's extremely unwise to operate as general partnership; not only are you responsible for your own lawsuit(s), but also that of "ALL" your partners potential lawsuits|