Patty Purchaser purchases Blackacre, 175 acres of unimproved land for $4 million. Three years later, she enters into a contract to sell Blackacre to a third party for $7 million and comes to you as her trusted advisor to advise her of the tax consequences of the sale. What do you tell her?

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Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.