What Happens to the Wealthy if Latest Estate Tax Proposals Pass?
What Happens to the Wealthy if Latest Estate Tax Proposals Pass?
If you haven’t heard by now, there is a chance that wealthy business owners could be taking a big hit thanks to a proposal announced last month by the U.S. Treasury Department. We discussed this proposal in a previous blog: “Is Obama Secretly Trying to Raise the Death Tax Again?”
According to the Treasury’s proposal, the practice of so-called valuation discounts would be slowed or even eliminated in certain situations. These discounts allowed for the transfer of a wealthy business, in part or its entirety, from a parent to a child, for example, to be done at a much lower tax rate. This new proposal would basically negate that discount on transferred business stakes. So what does that mean for wealthy business owners?
This proposal is squarely aimed at high net worth individuals and families that own a family business. With the change the value of a transfer of part or all of a business would no longer receive the valuation discount, which means the recipient would have to pay the full estate tax incurred. If you own a wealthy family business then now is probably a good time to meet with your wealth advisor, accountant or estate planner to make sure your estate plan is in proper order. Click here to contact GROCO for more info.
At the same time, for now this is still just a proposal and there will be a public hearing on the matter on Dec. 1. Additionally, there is a chance that this could all change again after the presidential election, as both candidates have strong opinions on the current estate tax. Stay tuned.
https://www.nerdwallet.com/blog/investing/estate-planning/irs-estate-tax-proposal-hit-wealthier-business-owners-hurts/
We hope you found this article about “What Happens to the Wealthy if Latest Estate Tax Proposals Pass?” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
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