Expected changes to gift & estate tax laws are creating urgency around executing strategic and timely estate plans.

Company owners, executives and high net worth individuals are rethinking their gifting strategies in light of anticipated changes in gift and estate tax laws. Cabrillo Advisors, Inc. (“Cabrillo”) has been working closely with key wealth management, estate planning and tax advisors to ensure that maximum value is contributed under the existing exemption limits. If you or your clients have not already done so, now is the time to consider your options and take action.

Current proposal to accelerate reduction in Tax exemption

Though it did not happen last year, it appears likely that changes to gift and estate tax laws are imminent, with the recent proposal in Congress expected to have a significant impact. If passed, the resulting changes may reduce the current lifetime federal gift tax exemption of $11.7 million to approximately half and include an increase in estate and capital gains tax rates.

In addition, permitted discounts for taxpayers taken in connection with valuations of privately held companies may decrease as well. It is important at this time to strategize gifting of both short and long term assets accordingly.

Cabrillo is working with exceptional tax and wealth advisors nationwide to help our clients make the best decisions during this time of change. Our deep experience in tackling the nuances of relevant valuation methods and discounts helps us keep up with the variations in tax legislations that are being introduced at breakneck speeds in the current environment.

Should you desire a consultation, Cabrillo would be happy to answer your preliminary questions and introduce the appropriate advisor for your specific needs.

 

Cabrillo is sought out for complex valuation and transaction opinion assignments. We are sophisticated thought partners to private and public companies, investors and boards of directors.

From pre-revenue companies through public entities, boards of directors and companies rely on us for transaction opinions and valuations.

We help our clients elevate their business successes by lending our experience gained from:

• Valuing thousands of companies across a broad array of industries, from simple seed-funded businesses to significant private and public entities;
• Collaborating with seasoned professionals, including boards of directors, attorneys, consultants, accountants, entrepreneurs and;
• Successfully navigating extensive reviews by boards of directors, the SEC and auditors, while always supporting our clients’ positions and strategies.

Visit https://cabrilloadvisors.com/ or contact us to learn more about our value-added solutions.