Today’s
post will shed light on two of the main Wealth Preservationist topics
throughout the last few months. Specifically, the proposed IRC Section 2704
Treasury Regulations (see posts dated August 15, 2016 and November 29, 2016);
and tax implications of the Trump Administration (see posts dated December 6,
2016 and December 20, 2016).
After
months of uncertainty regarding the proposed regulations, it appears that the
election and inauguration of Donald Trump means the end for the proposed
regulations. As a quick recap, the proposed IRC Section 2704 Regulations sought
to eliminate traditional (and significant) discounts for estate tax purposes
available to family controlled entities.
The
primary reason for the apparent end to the regulations is the failure of the
IRS to exclude active businesses from the reach of the proposed regulations, rather than target the investment based family controlled entities that serve
no active business. This failure to make an exception for active businesses led
to significant public backlash as success of family controlled businesses can
be vital to creation and sustainment of jobs within this country.
Although
owners of family controlled entities benefit from the apparent end to the
proposed regulations, business succession is still an extremely important
component of one’s estate plan. If you are an individual with a family
controlled entity, it may be advisable to contact our office to ensure that such
business is properly incorporated to fit within your overall estate plan.
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