By Andrew Lopez and Kevin Zanni

In this article, we will discuss wealth transfer tax planning and provide hypothetical examples to highlight the estate tax benefits provided by a business valuation. Sometimes it is important to consider how a simple planning strategy could provide a taxpayer—and taxpayer’s estate—with future tax savings.  

The impact of estate taxes on taxable estates limits the transfer of wealth to descendants. Estate taxes are assessed both on the federal and the state levels. Under federal tax laws and most tax states, asset thresholds, or exclusions, factor into the determination of an estate tax liability. Recent changes to federal taxation laws provide a favorable environment for efficient transfers of generational wealth. In this article, we will explore how lifetime gifts to heirs and trusts can help transfer wealth efficiently, and, in effect, lower the taxation burden.

Download article: A Simple Example of Business Succession Tax Planning