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
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.Click here to read the full article on www.libn.com >>