People with estates that are subject to estate tax need to act promptly to utilize the opportunities in the current regulations.
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Easthampton, MA (PRWEB) September 16, 2015
Legacy Counsellors, P.C. is urging its clients to take action before the law changes. Currently, valuation discounts allow taxpayers to transfer a minority interest in a limited partnership (LP) or limited liability company (LLC) to a family member at a value that is reduced for gift tax.
“If these regulations are approved, it will be very controversial and impact many high-net-worth people,” said Kevin Quinn, founder and president of Legacy Counsellors, P.C. “People with estates that are subject to estate tax need to act promptly to utilize the opportunities in the current regulations.”
The current regulations stipulate that a family member can receive an interest in an entity instead of directly in the underlying assets. The value of the “gift” can then be discounted for gift-tax purposes. The exact scope of the regulations is unknown, but they will likely make it more difficult for taxpayers to discount the value of family business interests.
“Depending on the type of assets held by the entity, the combined valuation discount would usually range from 20 to 50 percent,” said Quinn. “And although the proposed regulations have yet to take effect, they could be become effective on the date they are eventually issued or deemed effective back to the date they were initially issued. Regardless, the time to make your gift is now so seize the day and protect your assets.”
About Legacy Counsellors, P.C.
Legacy Counsellors, P.C., located at 117 Pleasant Street, Easthampton, MA 01027, focuses solely on helping families create a lasting legacy through proper estate-planning measures. Its legal team offers guidance to help with tax-effective strategies that can reduce the length of the probate process. For more information or to schedule an initial consultation, please call (888) 537-8049.
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