SPOTlIGHT: ESTATE PlAnnInG
Businesses saving more by gifting now instead of later
By EvElyn lEE one, according to estate planning experts. lower than what the value may be” at death. through a trust, said Barry Frank, a partner
Despite the uncertainty surrounding the in the recession, “many businesses are at clients’ businesses have declined in value by at the philadelphia office of law firm Archer &
federal estate tax, some new Jersey entrepre- a lower value, if you look at the spectrum of 20 percent to 50 percent during the recession, Greiner P.C.
neurs are looking at transferring business inter- their overall valuation over time,” said Deirdre she said. this year is a particularly favorable time
ests to their children to take advantage of low Wheatley-Liss, a shareholder at Fein, Such, in most cases, the parent would transfer to gift a business interest because the gift tax
valuations and discounts that are available. But Kahn & Shepard P.C., a parsippany-based law the business to a partnership or limited liability rate is currently 35 percent after a $1 million
while making such a transfer this year may yield firm. For business owners, “this now makes it company, if it is not already structured as such, exemption — it could be as high as 55 percent
tax savings for the business owner, it comes with a good opportunity to transfer the business, and give a minority interest in the partner- next year, said Wheatley-Liss. moreover, as the
amper light of hurdles and isn’t right for every- Page 1
a multitude bulb ad:Layout 1 1/12/2010 10:24 PM because you’re at a value today that may be far ship or the LLc to the child, either outright or ➤➤ See GIFT on page 23
assets to family
By EvElyn lEE
WhiLe more oWners are considering trans-
fers because of low business valuations, “there
are a lot of hindrances to the closing of the trans-
Need more innovative ideas
fer,” said Deirdre Wheatley-Liss, a shareholder
at law firm Fein, Such, Kahn & Shepard P.C.
only about one of four clients inquiring about
transfers actually goes through with it, she said.
from your business advisor?
the top hindrance, she said, is financing
issues. For businesses that have taken out bank
Rely on Amper.
Many banks will not continue to finance a business after
a transfer has been made, according to a shareholder at