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July 27, 2020

A 2020 Estate Planning Reader

Amid a Global Pandemic, It's Easy to Lose Track of Some Big Things That are Going On

In the depths of the stock market pullback, we wrote about the opportunity to take advantage of depressed share values.  When the Applicable Federal Rate fell to historic lows, we wrote about the “double opportunity” afforded by low values coupled with low interest rates.

Which leads us to last week.  During our webinar on the estate planning opportunities in the current environment, fellow panelist Brook Lester reminded us that – in addition to all the other fun stuff going on in 2020 – there’s a presidential election in November.

We possess no political clairvoyance.  However, if a Biden administration were to assume power in January 2021, we know that adverse changes to the current estate tax regime would be likely.  As November draws near, advisors are urging family shareholders to mitigate the political risk by implementing significant transactions now.

In this week’s post, we have assembled some helpful resources we have come across that provide helpful insight on the estate planning opportunities and strategies available to family business owners during 2020.

  • Written in a pre-COVID world, the 2020 Wealth Planning Outlook from Northern Trust still offers valuable perspective for family business leaders.

  • Published in June 2020, this whitepaper from our friends at Diversified Trust provides timely insights for family shareholders evaluating their planning needs in the wake of COVID-19.

  • This article sheds some light on how wealthy families are pursuing estate planning goals with renewed vigor under the shadow of COVID-19.

  • Attorney and Forbes.com columnist Matthew Erskine offers a compelling case for using one’s unified credit sooner rather than later.

  • Finally, this article from CNBC’s website digs deeper into the Biden campaign’s tax proposals, including the elimination of the “step-up” in basis currently available to heirs.

It is generally a bad idea to let the tax tail wag the dog.  However, the combination of depressed asset values, low interest rates, and political risk means that family shareholders should accelerate work on the business and family issues that pave the way for effective estate planning.  If your family has avoided having those conversations, it’s not too late, but the time to start really is now.  A well-reasoned and supported business valuation is fundamental to any estate planning strategy.  Call one of our professionals today to started on a valuation of your family business.

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IRS scrutiny of gift and estate tax valuations typically arises not from a single issue, but from patterns of weak support, inconsistent assumptions, or a disconnect between the rights of the interest being valued and the conclusions reached. Examinations often focus on whether discounts for lack of marketability, tax affecting for pass-through entities, projected cash flows, growth rates, and discount rates are grounded in company-specific facts and supported by relevant capital market evidence. Valuations that fail to clearly tie empirical data to the economic realities of the subject interest are more likely to invite challenge.
Mercer Capital Proudly Sponsors and Attends the ACTEC 2026 Annual Meeting
Mercer Capital Proudly Sponsors and Attends the ACTEC 2026 Annual Meeting
Mercer Capital is pleased to again sponsor the American College of Trust and Estate Counsel’s (ACTEC) 2026 Annual Meeting, taking place March 4–8, 2026, in Tampa, Florida. As a valued partner in the trust and estate planning community, Mercer Capital is proud to support this premier event, which brings together leading legal and financial professionals to explore today’s most pressing issues in trust and estate law, planning, and related advisory matters.The ACTEC Annual Meeting features an extensive program of professional seminars, committee sessions, and networking activities, hosted at the JW Marriott Water Street and the Tampa Marriott Water Street in Tampa Bay. Attendees can engage in deep dives on emerging legal trends, practical planning strategies, and peer-to-peer dialogue throughout the week.Mercer Capital’s Travis W. Harms, CFA, CPA, ABV; Timothy K. Bronza, CPA, ASA; and Thomas C. Insalaco, CFA, ASA will be attending this year. Their participation reflects the firm’s deep commitment to ongoing education and to providing thoughtful and objective valuation, tax, and advisory insight to the trust and estate community.Travis Harms is President of Mercer Capital and leads the firm’s Family Business Advisory Services Group. With deep expertise in valuation for gift, estate, and income tax planning, Travis provides strategic financial consulting and education to multi-generation family businesses, helping align financial realities with long-term succession goals.Tim Bronza serves as Managing Director of Mercer Capital’s Florida office. He brings extensive experience valuing business interests for federal gift, estate, and income tax purposes supporting sophisticated valuation assignments across corporate and fiduciary contexts.Tom Insalaco is a Senior Vice President in Mercer Capital’s Florida office. Since 2008, Tom has performed valuation analyses for a broad range of industries, assisting attorneys, fiduciaries, and financial professionals with estate planning, exit planning, and transactional valuation needs.Mercer Capital looks forward to seeing old friends and making new ones during the meeting. For more information about Mercer Capital’s Gift, Estate, and Income Tax Compliance practice, click here.

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