It is common for manufacturers and distributors to be
family-owned. Unfortunately, it is also common for owners to let
estate planning fall by the wayside. This can cause the owners and
their family members to lose out on valuable tax-saving
opportunities.
The American Taxpayer Relief Act of 2012 (ATRA) brought some
certainty to estate planning. However, the current legislative calm
could be disrupted without warning by future tax reform efforts on
Capitol Hill. If you have not recently reviewed your plans for
transferring wealth and management responsibilities to the next
generation, now is the time to do so.
What are the Current Rates and Exemptions?
Under ATRA, the top gift and estate tax rate is now 40%. The law
also permanently sets the gift and estate tax exemption of $5
million which is adjusted annual for inflation. For 2014, the
adjusted exemption is $5.34 million. As a business owner, you can
transfer up to that amount tax-free to your heirs while you
