Larry Ingber, Tax & Business Services Principal, Quoted in Long Island Business News Article "Act Now, Pay Less Later?"
Long Island Business News
By Bernadette Starzee
Excerpt:
A change in estate planning regulations is expected, possibly as early as mid-September, prompting some high-net-worth individuals to act now to take advantage of something called valuation discounts – before they are reduced or eliminated altogether.
For gift and estate planning purposes, assets – such as commercial real estate or shares in a company – must be valued at the fair market value, said Charles Scarallo, a tax manager at Markowitz, Fenelon & Bank in Riverhead. Fair market value refers to the price at which an asset would change hands between a willing buyer and a willing seller, when both have reasonable knowledge of the relevant facts.
To transfer wealth to the next generation, a common scenario is for parents to set up a family limited partnership or limited liability company.
Further, all future appreciation from the time of the gift would be outside the donor’s taxable estate, according to Larry Ingber, a partner in the Melville office of accounting firm Marcum.
“You have frozen the value of the piece given away as of the time of the gift,” he said.
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