If formed in a state that allows
“dynasty trusts,” such as New Hampshire,
either of these trusts can last indefinitely,
transferring significant wealth to your
children and future generations.
Advantages of transferring
non-voting Planet Fitness interests to
these trusts:
• The full value of the assets (not just
the discounted value) is transferred out of
the owner’s taxable estate;
• The future appreciation of the trust
assets will not be included in the owner’s
(or spouse’s, in the case of a SLAT) taxable
estates;
• These trusts can be generationskipping trusts and GST exemption can be
applied to the transfers;
• In some cases, we are able to structure the trusts to allow trust distributions
to an ILIT (irrevocable life insurance trust),
preserving additional gift tax exemption;
• Both SLATs and IDITs can be
designed as“Grantor Trusts”so the owner
continues to pay income taxes on the trust
income, allowing further reductions in the
owner’s taxable estate without use of gift
tax exemption; and
• With a SLAT, the grantor has
indirect access to SLAT assets through
distributions to the spouse (a safety net).
Asset protection and state income/
capital gains tax planning
We have also helped Planet Fitness
clients transfer non-voting shares into
a New Hampshire Asset Protection
Trust (NH APT). Assets held in a NH
APT remain in your taxable estate but
provide significant asset protection
benefits from creditors with the added
advantage of eliminating state income
tax and state capital gains tax upon the
sale of a franchise. This is because New
Hampshire does not impose income or
capital gains taxes on the assets held
in a NH APT. We would be pleased to
provide more information about NH
APTs as well.
Summary
Planet Fitness franchise owners
can save enormous amounts of future
federal estate, and possibly also GST,
taxes with careful planning. You can
take advantage of an estate freeze, and
transfer discounted non-voting interests
into trust(s) that benefit your spouse,
your kids and future generations. You’ll
be transferring the assets at today’s
discounted value (the freeze), and the
full value and all future appreciation will
be outside your federal taxable estate. If
you transfer the assets to a SLAT, you
have a safety net because your spouse
is a beneficiary. Meanwhile, you receive
annual income (from the promissory
note), which you have full control over –
you can feed it back into the business or
use it for any other purpose. G
Contributed by McLane Middleton, P.A.;
Sagemark Private Wealth Services;
and Ayer and Associates – Ameriprise
Financial Services. Contact Steven M.
Burke, Esq. CPA, CGMA at 617-849-9972
or steve.burke@mclane; Linda R. Garey,
Esq. at 603-628-1325 or
linda.garey@mclane.com; Charles
Evangelakos, COA at 617-728-7447
x4064 or Charles.evangelakos@lfg.com;
or Christopher Ayer at 603-430-9080 or
christopher.ayer@ampf.com.
EVERY planet NEEDS A SUN
WE KNOW TANNING and
WE KNOW PLANET FITNESS®
Let our experience, our inventory and our team
help you achieve profit and black card growth.
Kacee Gibson
Planet Fitness® Team Lead
Lotions, Lamps, Accessories
Eyewear, Lamps, Parts
GearedUp | 2016 Issue 3
1-800-554-8268
www.heartlandtan.com
43