2009-01-12 06:34:03 -
For owners of privately held companies who were planning to transfer their companies to family member(s), such as a son or daughter, the economic downturn may provide a great opportunity to save on gift and estate transfer taxes, which are driven by the fair market value of each company.
Thomas H. Bergh, Partner Varnum Law said, "Because the
value of a business is determined in part by general economic conditions in the marketplace, fair market values of many enterprises are at historic lows. In addition, IRS-determined interest rates can also have a material impact on the tax cost or transfer, and those rates are likewise at historic lows. Thus, private owners of companies who are willing to move forward presently could save tens of thousands of dollars in succession taxes, and at the same time, maintain effective control of their companies. As the economy rebounds, their families will be poised to take full advantage of opportunities without transfer tax worries."
The bottom line for business owners is that if they have ever considered turning over their companies to relatives or children, there is no time like the present. Varnum Law tax attorneys have implemented numerous business transfers on a tax-efficient basis, and have been discussing with many other clients the possibility of accelerating the transfer of family-owned businesses to children or relatives based on this potential tax saving opportunity.
Media note:
Please be advised that Varnum will not reveal which clients they've been talking to, or which clients have made inquiries, based on confidentiality issues.
Interview availability by calling 312-775-8399
Varnum Law has tax attorneys specialize in succession planning and the implementation of transferring all types of privately held companies: manufacturing, retail, distribution, service, transportation, etc. These specialized attorneys will conduct interviews on this topic.
Contact Rick Kamel 312-775-8399 and Varnum would be happy to schedule an interview with one of the attorneys who specialize in tax saving succession planning and wealth transference.
For Varnum Law
Rick Kamel 312-775-8399
