Valuation rules are under review.
There is no definitive answer regarding the fate of the current and controversial estate valuation rules.
The Trump Administration desires to reduce tax regulator burdens.
These rules are now under review by the U.S. Treasury Department.
According to a recent Forbes’ article titled “Hated Estate Tax Valuation Rules On Trump's Hit List,” its review is to be passed on to the President by September 17.
Why is the “Restrictions on Liquidation of an Interest for Estate, Gift and Generation-Skipping Transfer Taxes” under Section 2704 so controversial?
What does this mean?
When a family business owner dies, the estate taxes could be increased.
Those in favor of the rule believe it is important to close loopholes for the wealthy when it comes to taxes.
Those opposed feel the rule removes an important tool for small family businesses.
When the rule was announced last August, people began updating their plans accordingly.
What should you do?
To be safe, you should get a qualified appraisal of your business, make an “adequate disclosure” and file a gift tax return.
Most importantly, do not try to meet this task on your own.
Work with an experienced estate planning attorney to create a plan to meet your needs and satisfy the tax laws.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Forbes (August 11, 2017) “Hated Estate Tax Valuation Rules On Trump's Hit List”