August 23, 2016

Here’s some useful info from our sister company, Horizon Advisors…

Limited Time Offer For Estate Tax Savings

The IRS has released new regulations which substantially reduce or eliminate provisions which have made family limited partnerships such a popular estate planning strategy for wealthy families.   Planning of this sort used minority interests and lack of control provisions to obtain substantial valuation discounts.  These discounts have been commonly used to minimize or avoid estate and transfer taxes for transfers to family members.  The new rules will do away with these discounts.

If you expect to have a taxable estate and have contemplated making transfers to your family members to reduce your eventual estate tax burden, you will need to act quickly to take advantage of using the old rules before the new regulations take effect.   The public hearing on the new regulations will occur on  December 1, so they will not become effective until after that date.  However, planning these sorts of transactions is not a simple process, so if you are interested, contact your estate planning counsel soon to see if this could be useful to you before the new rules take effect.


Maddox, Thomson & Associates

Maddox, Thomson & Associates

MTA is a full service, privately held CPA firm established in 1985 in Houston, Texas. Built on a reputation for client service, the firm delivers tax-compliant solutions through its financial planning, tax preparation and consulting services.

With more than 30 years of experience, our team of seasoned professionals will help you define personal and professional financial goals and establish strategies to maximize achievement.