- On December 18, 2015
Time may soon be running out regarding a 20-49% estate tax savings opportunity. For years, savvy taxpayers have been successfully placing business interests, investments, real estate and other value into Family Limited Liability Companies (FLLCs) containing significant voting and transfer restrictions over the FLLC interests. Then, on a valuation discounted basis, such taxpayers have been transferring significant portions of their FLLC interests into estate tax free trusts benefiting their family members. Again, valuation discounts typically range somewhere between 20-49% for the FLLC interests transferred resulting in very significant tax savings. Similar valuation discount planning is available for S corporations, C corporations and limited partnerships. Unfortunately, the IRS is signaling regulations to restrict or even eliminate valuation discount planning. The actual content and timing of any such regulations are unknown at this time; however, the latest information indicates that the IRS may be taken action as early as 12/31/15. So, clients should consider planning ahead of any new regulations, and now is the time. Please call us at (847) 382-9130 for more information.