GEAB&P Client Alert Discusses New Proposed IRS Rules for Gifts and Bequests of Interests in Family Controlled Entities

Members of GEAB&P’s Trusts & Estates and Tax groups drafted a Client Alert entitled “Proposed Rules May Drastically Restrict Valuation Discounts for Gifts and Bequests of Interests in Family Controlled Entities.” The Client Alert discusses the IRS recently releasing long- awaited proposed regulations, which may drastically restrict or eliminate the discounting of interests in family controlled entities when transfers are made by gift or at death to members of the transferor’s family. These regulations would restrict discounting whether the entity holds investment assets or runs an active business.

The proposed regulations will be the subject of a public hearing on December 1, 2016, and may be finalized soon thereafter. In the Client Alert GEAB&P recommends that clients who are thinking about pursuing a gift planning strategy with certain investment assets, real estate assets or family-owned businesses give careful consideration to finalizing such gifts prior to December 1st of this year.

View Client Alert here.