Wealth Planning Alert
On August 2, 2016, the Treasury Department issued Proposed Regulations that would eliminate virtually all minority or lack of control discounts for family-controlled entities (including family limited partnerships, LLCs, and corporations, regardless of whether active businesses or passive holding companies) for gift, estate, and generation-skipping transfer tax purposes. Public Hearings on the Proposed Regulations are scheduled in Washington, DC on December 1, 2016. The Treasury announced that most of the new rules would not be effective before 30 days after the Proposed Regulations become final. Hence, it is possible the new Regulations will take effect sometime late this year or early next year. As a result, it is important to complete any discount-related planning during the next several months.