Monday, November 21, 2016

AFR's for December

The Section 7520 rate is 1.8%
  Annual Semi-annual Quarterly Monthly
Short-term 0.74% 0.74% 0.74% 0.74%
Mid-term 1.47% 1.46% 1.46% 1.46%
Long-term 2.26% 2.25% 2.24% 2.24%

Tuesday, November 15, 2016

President-elect Trump and the End of the Death Tax – Not So Fast

Now that Trump won the Presidency, some are excited and some are frightened as to what this means for the United States of America. Interestingly for our law firm as an estate planning practice is that the repeal of the federal estate tax is found in President-elect Trump’s tax plan. With a Republican led Congress in both the House and Senate, some may assume that all of Trump’s tax proposals will easily be pushed through. However, it may not be that simple. Republicans have 51 seats in the Senate, which is not enough of a majority to invoke cloture. Cloture is the procedure by which the Senate can vote to set an end to a debate without rejecting the bill, amendment, or other matter that it has been debating. To invoke cloture, 60 votes in the Senate would be needed. Thus, it is possible that proposed legislation to repeal the estate tax might be “filibustered” in the Senate.

Historically, the last administration that pushed to repeal the estate tax was in 2006 under the Bush administration. The Republican-controlled Senate was not able to gather the 60 necessary votes. Thus it is reasonably foreseeable that the repeal of the estate tax is not in sight. In fact, many of the legislative proposals that President-elect Trump has been promoting may not be a sure thing without more than a simple majority of Congressional votes.

Wednesday, November 2, 2016


Our office recently sent a letter to our clients who could potentially be affected by proposed changes to Section 2704 of the Internal Revenue Code, which may eliminate valuation discounting for gift and estate tax purposes. It is not too late to schedule an appointment to discuss the implications on your estate plan if this new regulation is implemented.

As a brief background, the US Treasury has recently issued Proposed Regulations that could have a dramatic impact on your estate planning by eliminating valuation discounts. For wealthy people looking to minimize their future certain estate tax, this is critical.  If you are concerned about protecting a family business, family investment assets, or real estate from having to be sold in order to pay the federal estate tax at your death, then it is worth investigating this. 

Act Now: Time is of the essence. Once the Proposed Regulations are effective, which could be as early as year-end, the ability to purposely structure discounts on assets of your estate might be substantially reduced or eliminated, thus curtailing your tax and asset protection planning flexibility.  Properly planning with this technique takes time to structure the various steps of the transaction.  It is important to start as soon as possible in order to complete the planning before the regulations are finalized.  

Please call our office today at 702-433-4455 to schedule an appointment to review your estate plan.