For estate planning purposes, we were advised that we should sign a transfer of shares (spouse to spouse) which will pre-dated (by a lawyer) in case of death of a spouse. [A bill of sales of shares was not recommended; in fact, we were told that a spouse cannot sell his/her shares to the other. (I see also in Dr. Guzman tax docs, that even if possible, gifts at taxed at 25%).]
We are considering this option because none of our children are Dominican residents and we also have assets in the US that we will go to them in their entirety. Moreover, our tax reporting in the US is based on having an LLC here owned by husband and wife. Bringing the children in will indeed cause a lot of issues with our US taxes, more so than converting the EIRL to a sole proprietorship when of us passes.
So my questions are:
Is a transfer of shares of an EIRL from one spouse to the other subject to a transfer tax? If it is, how much is this tax?
Has anyone done or considered doing this for estate planning?
Thanks
We are considering this option because none of our children are Dominican residents and we also have assets in the US that we will go to them in their entirety. Moreover, our tax reporting in the US is based on having an LLC here owned by husband and wife. Bringing the children in will indeed cause a lot of issues with our US taxes, more so than converting the EIRL to a sole proprietorship when of us passes.
So my questions are:
Is a transfer of shares of an EIRL from one spouse to the other subject to a transfer tax? If it is, how much is this tax?
Has anyone done or considered doing this for estate planning?
Thanks