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Cendrowski Corporate Advisors LLC: Estate & Gift Planning Impacts of COVID-19

Cendrowski Corporate AdvisorsThe COVID-19 pandemic has greatly impacted the overall economy. The economic and legislative shifts are presenting opportunities for taxpayers to re-look at their gift and estate planning initiatives. In the current (hopefully, temporary) down market and low interest rate environment, there are strategies that taxpayers can employ to maximize the transfer of wealth while minimizing taxes.
Potential strategies/factors to consider include:

  • Ensuring that your documents reflect the wishes of the estate holder. Often times, it is easy to forget that the desires of the taxpayer can change over time, and taking this first step is important in creating an effective estate and gift tax plan.
  • Developing a strategy that can address charitable giving and asset strategies. Examples include refinancing loans to reflect the low interest rate environment, engaging in transactions with trusts to maximize wealth appreciation and transfer, and maximizing the amounts that can be transferred subject to estate, gift, and generation skipping transfer tax exemptions/limitations.
  • Loss Harvesting and Roth IRA conversions, two strategies that can minimize income taxes and maximize wealth transfer.
  • Valuing interests in closely held businesses as current market conditions may impact the valuation, resulting in the possibility of a tax-advantaged transfer.

The above may not necessarily apply to all client situations, but are general strategies that can assist clients in evaluating their overall income, estate, and gift tax plans. Each client situation is unique – contact CCA and your other professional advisors to receive personalized advice.

Posted March 27, 2020 in COVID19 | MEMBER NEWS