In the Headlines
August 2, 2016
U.S. Aims to Clamp Down on Tactic to Avoid Estate Tax
The Wall Street Journal
The U.S. government is threatening wealthy business owners with a proposal that will make it harder for them to transfer assets to beneficiaries without paying estate and gift taxes. The tactic from the Treasury Department and Internal Revenue Service would increase limitations on a common approach family businesses use to transfer interests.
Private wealth services attorney David Scott Sloan said a typical strategy would place assets, say $14 million, into a company with restrictions on some of the owners’ ability to sell their pieces. Those restrictions could get the owners an appraisal with a much lower value for those assets, say $10 million.
READ: U.S. Aims to Clamp Down on Tactic to Avoid Estate Tax (subscription may be required)
Private wealth services attorney David Scott Sloan said a typical strategy would place assets, say $14 million, into a company with restrictions on some of the owners’ ability to sell their pieces. Those restrictions could get the owners an appraisal with a much lower value for those assets, say $10 million.
READ: U.S. Aims to Clamp Down on Tactic to Avoid Estate Tax (subscription may be required)