The New Section 2706 Regulations Might Impact You

On August 4, 2016, the IRS recently proposed regulations that will, if adopted, will have the most sweeping change in the Estate Tax law in many years. Since 1993, we have relied on valuation discounts in corporations, limited partnerships, and LLCs to effectively reduce the estate tax and increase the inheritance you can leave to your family.  This new IRS regulation will effectively eliminate the commonly used valuation discount techniques routinely used by estate planning practitioners to help clients reduce their estate tax exposure.

If the IRS’s current timetable holds, these regulations may become final as early as January 1, 2017. Although that date isn’t set in stone, I expect that the regulations will be final around that time or shortly thereafter.

Unrelated to the new IRS regulation, I am also taking more seriously now the proposal that Hillary Clinton has made to take the Estate Tax exemption back to $3.5 Million or less. You can take steps now to protect your estate from the risk of this happening. I’m not making a political statement here.  I just don’t want to look back and realize that we failed to act when we could have.

We have a narrow window of time to implement “freezing” techniques under current, more favorable law, to save taxes and protect your family’s inheritance.

Please schedule an appointment with me as soon as possible. I’d like to get a time on the calendar so that we can take a look at the options that are available to you under current law between now and the end of this year.  Now’s a great time to review your plan anyway.  When we meet, I want to make sure that anything we do to help you protect your family’s inheritance from the IRS still achieves your overall planning goals-and not just the tax-saving goals.

Depending on your circumstances, some options are going to be a better fit than others, and I want to make sure you get the best outcome possible. And please keep in mind, if you did decide to take action to implement one of these strategies, it takes 2-3 months just to get the work done. So you can’t wait until November or December to get started.


Please call today, and let’s discuss the next steps.