Estate Planning Opportunities Amidst COVID-19 Pandemic and Volatility

Amid the current market volatility and economic downturn, many people are thinking about how this uncertainty will affect their businesses and their assets. While estate planning might not be their highest priority, individuals should consider taking advantage of low valuations to minimize estate and gift taxes.

In this context, there are several key issues that should be considered:

  1. Gifts: Gifting during a time of low values can help reduce estate and gift taxes.
  2. Market volatility and valuation discounts: Valuation discounts associated with a lack of control and lack of marketability are arguably larger during times of market volatility.  
  3. Reduction of lifetime exemption: The historically large lifetime estate and gift tax exemption is scheduled to sunset in 2026. Individuals may lose the benefit of this large exemption if they do not use it soon.

This period of market volatility and low values presents an opportunity to transfer assets at relatively low values. Weaver can work with your attorneys and financial advisors to ensure that you are considering the best way forward with regard to your estate planning. Please contact us if you would like to discuss any of these ideas and evaluate your estate plan.

© 2020

 

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Curt Germany

Curt Germany

Partner-in-Charge, Valuation Services

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Curt Germany, Jr., CVA, who was a managing director and member of the management committee at HSSK until its merger with Weaver…

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