Many estate planning attorneys serving investors and executives are urging clients to go through a review before the rules take effect. The proposed Section 2704 changes would apply only to transfers occurring on or after the date the regulations come into force, and the Treasury Department regulations, if adopted, would take effect approximately at the end of December 2016.
Bryan Galat, an estate and tax attorney with DearthGalat LLC, believes that of all the tools available to minimize estate tax exposure, valuation discounts have often been a key planning component, whether for gifts of FLP interests or installment sales to grantor trusts. We are advising our clients with significant planning opportunities to act now while we know what the law and regulations say, rather than wait to see what happens before year end, when those planning opportunities may be lost.”
All executives and investors should ask themselves these three key questions:
- Will the regulations be accepted in their proposed format?
- How do your individual family dynamics impact your gifting strategy?
- Are you willing to consider irrevocably transferring an asset out of your estate?
We are open to discussing the potential implications of the proposed Section 2704 Treasury Regulations on your estate plan and to consider whether transferring part of your business interests to an FLP or LLC makes sense for you. Our Wealth Advisory team, alongside third-party estate and tax planning providers, can support your needs.