Family business owners and their allies are trying to block rules proposed during the Obama-era that would curb valuation discounts and lead to increased estate taxes. Proponents for the rules claim it would end a loophole for the wealthy. With the discounts, family businesses are able to value their assets at reduced levels. This allows them to pass on their hard-earned wealth to beneficiaries free from some estate and gift taxes. Much of the conversation would be moot if President Trump is able to get rid of the estate tax. With this, the safest course of action is to undertake valuations based on current law. Even if repeal were to occur, it is not guaranteed to be permanent.
See Ashlea Ebeling, Hated Estate Tax Valuation Rules On Trump’s Hit List, Forbes, August 1, 2017.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
