My good friend Eva Lang aka BV Girl recently posted "Goodbye to Discounts?." From her post:
The bill [HR 436] also contains a provision disallowing valuation discounts for
transfers for interests in entities (such as LLCs and corporations)
containing "nonbusiness assets." This is aimed at preventing the use of
family limited partnerships and limited liability companies (which are
not true operating businesses - holding marketable securities, for
example) for discounted transfers to younger family members. This would
eliminate a common and highly effective method for gift and estate tax
reduction, but LLCs would continue to be an excellent tool for asset
protection. The effective date of this portion of the Act would be the
date of enactment. (North Carolina Estate Planning Blog)
We will keep you posted on the status of this bill.
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