skip to main content
X
BACK OK

MARKET UNCERTAINTY CREATES OPPORTUNITIES FOR ESTATE AND GIFT STRATEGIES

MARKET UNCERTAINTY CREATES OPPORTUNITIES FOR ESTATE AND GIFT STRATEGIES

The Tax Cuts and Jobs Act (TCJA) increased the amount of the estate/lifetime gifting exemption through the year 2025. For 2020, the exemption amount is $11,580,000, effectively allowing a taxpayer to transfer wealth to the next generation of up to that amount tax free. As currently written, after 2025 the exemption amount would revert to pre-TCJA levels, which would be about one half of the current amount.

Uncertainties have created lower values not only in the stock market, but these same uncertainties could also affect the valuations of private companies. This has created a potential opportunity for individuals that were planning on gifting shares of publicly or privately held stock. An individual may gift the same overall value as planned, but more shares of a company can be transferred today than what may have been possible one month ago or possibly at the end of the year. Therefore, it may be prudent to evaluate whether any transfers of stock that were planned in the near term should be accelerated to today.

Hide Firm Disclaimer

©2021 UHY LLP. ALL RIGHTS RESERVED.

UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc., and its subsidiary entities. UHY Advisors, Inc.’s subsidiaries, including UHY Consulting, Inc., provide tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors” and “UHY Consulting”. UHY Advisors, Inc., and its subsidiary entities are not licensed CPA firms. UHY LLP, UHY Advisors, Inc. and UHY Consulting are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP, UHY Advisors and/or UHY Consulting (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.

Show Firm Disclaimer

Site Designed and Developed by Multimedia Solutions