In the crosshairs: Popular estate planning practice in jeopardy

Description

Abstract: A practice commonly used by many dealerships to reduce estate taxes could be on the chopping block. In August 2016, the Treasury Department proposed new regulations that would place limits on the use of this practice by all family-owned businesses, including dealerships. The practice involves discounting the value of ownership shares in a family-owned dealership when transferring them to heirs. This article explains how these valuation discounts work and how the regulations, as proposed, would change things.