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JH Advanced Markets Radio
Opportunity For Valuation Discounts In Nevada
When planning for the transfer of closely-held assets, techniques that make use of the lowest transfer-tax costs are highly desirable. Effective October 1st, the State of Nevada allows for more restrictive default provisions to be included when a partnership agreement is drafted in that State. This may provide the taxpayer the opportunity to receive higher valuation discounts, lowering the overall transfer tax costs.
Steve Oshins, attorney with Oshins & Associates, Las Vegas Nevada, joins Randy Zipse, VP and Senior Counsel, John Hancock Advanced Markets Group to discuss the unique valuation discounts now available in Nevada as of October 1st. Steve helped to design the language in the new Nevada statute and believes that more of these agreements will be drafted in Nevada to take advantage of the more favorable valuation discounts available for 'restricted entities'.
Randy and Steve discuss the restrictions required in the agreement that may result in a higher valuation discount and to what degree, as well as the impact of proposed legislation that may 'disregard restricted entities'. They discuss why drafting the agreement in Nevada and making intervivos gifts for installment sale transactions as of October 1st may help to create a tightly-held system of low-cost wealth transfer before the passage of such legislation.
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For more information, contact your John Hancock representative or the Advanced Markets Group at 1-888-266-7498, option 3.
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This material is for informational purposes only. Although many of the topics presented may also involve tax, legal accounting or other issues, neither John Hancock nor any of its agents, employees or registered representatives are in the business of offering such advice. The above material was not intended or written to be used, and it cannot be used, for the purpose of avoiding any penalty that may be imposed by the Internal Revenue Service. The above material may have been written to support the promotion or marketing of the transactions or topics addressed by the written material. Individuals interested in these topics should consult with their own professional advisors to examine legal, tax accounting or financial planning aspects of these topics. |
