The IRS, however, does not like the concept of valuation discounts, arguing that they have been abused and that these discounts are being used by large estates to minimize their estate and gift tax burden. As a result, the IRS may issue new regulations under IRC Section 2704, stopping or severely limiting this estate planning strategy.
There is no guarantee that these regulations will be issued. There is also no guarantee that these regulations won't be issued. As a result, it may be worthwhile to consider some steps to mitigate the risk of this tax law change. We suggest you contact your CPA, Attorney or Tax Advisor for further advice to see whether these new regulations will impact your estate planning, especially if your estate is above the estate tax exemption or applicable exclusion amount, which is $5.43M per person for 2015.
Disclaimer: Please note that every individual tax or economic situation is unique. Before you embark on any specific tax or financial position, it is important to consult your tax, financial adviser and/or attorney. The above isn't and shouldn't be construed as tax, financial, professional, or legal advice.