877-676-5837(1-877-6SOLVER)CONTACT 

Newsletter Sign Up

Please fill out info and submit to sign-up to be on the mailing list for the Newsletter.

Fields marked with an * are required

Contact Form

We are here to serve your needs. Please provide your contact information and one of our friendly customer service representatives will be in touch with you.

Fields marked with an * are required
Close

Search

Search IRS Problem Solvers

blog

Proposed rules make estate planning an important part of your year-end review

Proposed rules make estate planning an important part of your year-end review

Is your estate plan up-to-date? A year-end review as part of your overall tax planning is a good idea, especially in light of recently issued proposed rules that will make significant changes to certain estate planning techniques. Here’s what you need to know.

What’s changing. The new rules will limit the “valuation discounts” created when assets are transferred between individuals. These discounts help reduce the amount of your assets subject to gift and estate taxes, and are particularly relevant when you have more than $5,450,000 in assets ($10.9 million for a couple). Since the top estate and gift tax rate is 40%, taking advantage of these discounts can help reduce the tax bill on your estate.

Who’s affected. This type of estate planning usually involves the use of a family limited partnership to transfer ownership of assets such as businesses and real estate from parents to children. With this strategy, control of the partnership is dispersed among family members, making the partnership assets harder to sell. Due to the difficulty in selling, the value of the assets is reduced, creating a valuation discount. Once the rules go into effect, you may have to pay more gift and/or estate tax when utilizing this type of estate planning.

When the change will happen. Currently, the new rules are expected to be finalized in January 2017.

Contact us for details, and to schedule a review of your estate plan.

© MC 2016

Share

Consultation

Please enter your contact information below and we will contact you immediately.
Thank you so much for the opportunity to service you.
Have a great day!

Fields marked with an * are required

testimonials

"When I first came to IRS Problem Solvers, my debt with the IRS was over $100,000. By the time everything was completed, I paid nothing." - Nancy