Proposed IRS Regulations May Eliminate Discounting of Family Wealth Transfers

The Treasury Department has issued new proposed regulations that, if adopted as proposed, will effectively eliminate a common estate planning tool used to transfer wealth among family members. Under the current rules, transfers of minority interests of closely held business interests can be valued utilizing various discounts which results in greater tax savings.  The new proposed regulations would no longer allow discounting when making family transfers.

The new regulations will not take effect until 30 days after the publication of the Final Regulations. The IRS has scheduled a public hearing on these regulations for December 1, 2016, so it is likely that the new regulations will not become final until early in 2017.

Planning opportunities still remain for closely held business owners but the time to act is now.

For more information, or to set up an appointment to review your personal situation, please contact Bob Cohen at 610-458-4400, Ext. 231 or at

© 2016. This publication is intended for general informational purposes only and does not, nor is it intended to, provide the reader with legal advice of any kind. This publication does not, nor is it intended to, create any attorney-client relationship. Readers should consult with their own attorney to discuss the legal implications of any content in this publication to their particular situation.