Lustig Law Firm Estate Planning Blog

On December 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement Act (SECURE Act). The Act is the most impactful legislation affecting retirement accounts in decades and has several positive changes.

Family businesses are currently responsible for more than 70% of global production and are one of the principal creators of private wealth. For these reasons, skilled estate planning is essential to the tax-efficient transfer of the family business across the generations. The issue is that although most family business owners have estate plans in place, the plans are most likely outdated.

IRS attorney Cathy Hughes, at a recent ABA Taxation Section Meeting in May, signaled the Service’s intent to release new proposed regulations under IRC §2704(b)(4) by mid-September. Those proposed regulations would likely include new “disregarded restrictions” built into family entity strategies that would, in turn, reduce or eliminate the use of valuation discounts in those entities.

Although speaking about death and what’s going to happen once you’re gone are unpleasant topics that people naturally want to avoid, Paul Severo, senior vice president and financial advisor at RBC Wealth Management, points out that the sooner you being thinking about it, the better.

In the article written by Sandra MacGregor, Severo discusses what you can do to push past the emotional aspects of estate planning to make sure your surviving family members can successfully deal with issues that may arise after you pass away.

Charitable giving is not only a good way to contribute to society but it can also reduce tax exposure and educate younger generations about doing more for those less fortunate. By informing loved ones of your philanthropic objectives, you, as a donor, can get your family involved in this charitable giving process by holding family meetings to discuss goals and selecting charitable organizations that will receive your donations. This is an effective way to pass core values on to younger generations.