A silver lining to asset values decreasing? \u00a0I must be crazy! \u00a0I may be crazy, but I promise you it has nothing to do with this topic. \u00a0The silver lining is this – with assets (property, business interests, etc.) at their current depressed values, there is the opportunity to transfer those assets and reduce the tax-related consequences. \u00a0Fair Market Value (FMV) largely determines the tax liability incurred by gift or estate transfers. \u00a0Typically, the lower the FMV of an asset, the lower the gift or estate tax liability associated with the asset. \u00a0Because many assets have lost considerable value over the past 12-24 months, you may be able to transfer the asset with a much lower (or possibly no) tax liability.<\/p>\n
For instance, let’s say you have a vacant piece of property you have been planning on giving to an adult child who wants to build his or her first house. \u00a0The value of the land 2 years ago was $20,000. \u00a0It currently appraises at $12,500. \u00a0It may be advantageous to transfer it to the child now to take advantage of the $13,000 annual gift tax exclusion. \u00a0Many businesses have lost value in these turbulent times as well. \u00a0There are planning methods that can lock in the current value for purposes of transferring ownership interests in the business. \u00a0This may be particularly appealing to closely held businesses.<\/p>\n
These are just a couple of examples of the benefits of the current depressed asset values. \u00a0The list of estate and gift planning benefits provided is too numerous to give them all here. \u00a0Please feel free to contact me if you would like to discuss the potential benefit to your family or your business.<\/p>\n","protected":false},"excerpt":{"rendered":"
A silver lining to asset values decreasing? \u00a0I must be crazy! \u00a0I may be crazy, but I promise you it has nothing to do with this topic. \u00a0The silver lining is this – with assets (property, business interests, etc.) at their current depressed values, there is the opportunity to transfer those assets and reduce the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-188","post","type-post","status-publish","format-standard","hentry","category-estate-planning"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.lichtermanlaw.com\/index.php\/wp-json\/wp\/v2\/posts\/188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lichtermanlaw.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lichtermanlaw.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lichtermanlaw.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lichtermanlaw.com\/index.php\/wp-json\/wp\/v2\/comments?post=188"}],"version-history":[{"count":9,"href":"https:\/\/www.lichtermanlaw.com\/index.php\/wp-json\/wp\/v2\/posts\/188\/revisions"}],"predecessor-version":[{"id":197,"href":"https:\/\/www.lichtermanlaw.com\/index.php\/wp-json\/wp\/v2\/posts\/188\/revisions\/197"}],"wp:attachment":[{"href":"https:\/\/www.lichtermanlaw.com\/index.php\/wp-json\/wp\/v2\/media?parent=188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lichtermanlaw.com\/index.php\/wp-json\/wp\/v2\/categories?post=188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lichtermanlaw.com\/index.php\/wp-json\/wp\/v2\/tags?post=188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}