Article prepared by and republished courtesy of our DLA Piper Trusts and Estates colleagues.
Earlier this month, the US Treasury issued proposed regulations that, if finalized, will significantly increase the transfer tax cost of transferring interests in family-controlled entities to other family members, both during lifetime and upon death. These regulations relate to how the value of the transferred interest is determined for gift, estate and generation-skipping transfer tax purposes. Under current law, well-established valuation methods permit the application of discounts for the lack of control and lack of
Continue Reading New IRS Proposed Regulations Eliminate Valuation Discounts: Planning Likely Required before the End of 2016