Cookie Settings Main Content Main Menu Menu
  * Firm
      + Firm
      + Our Approach
      + Legacy & Culture
      + Careers
          o Careers
          o Why Choose Burke Warren
          o Attorney Opportunities
          o Law Students
          o Professional Staff Opportunities
          o Equal Employment Opportunity Policy
      + National & Global Reach
      + Diversity, Equity & Inclusion
      + Women’s Forum
      + Commitment to Community
      + Pro Bono
      + Contact
  * Team
  * Capabilities
      + Capabilities
      + Capabilities
      + Representative Experience
  * Insights
      + Insights
      + News
      + Alerts
      + Events & Speaking Engagements
      + Media Contact
  * Firm
      + Firm
      + Our Approach
      + Legacy & Culture
      + Careers
          o Careers
          o Why Choose Burke Warren
          o Attorney Opportunities
          o Law Students
          o Professional Staff Opportunities
          o Equal Employment Opportunity Policy
      + National & Global Reach
      + Diversity, Equity & Inclusion
      + Women’s Forum
      + Commitment to Community
      + Pro Bono
      + Contact
  * Team
  * Capabilities
      + Capabilities
      + Capabilities
      + Representative Experience
  * Insights
      + Insights
      + News
      + Alerts
      + Events & Speaking Engagements
      + Media Contact
  * Careers
  * Contact
  * Payments
  * 
  * 
  * 
      Alerts

  TAX ALERT: IRS Proposes to Eliminate Valuation Discounts for the Transfer of Interests in Family Owned Entities

      August 16, 2016
    |
      Alert

    On August 2, 2016, the IRS issued proposed regulations under Section 2704 of the Internal Revenue Code. The regulations address the valuation of interests in family owned partnerships, limited liability companies and corporations for Federal gift, estate and generation-skipping transfer (GST) tax purposes.

    If finalized, the regulations would significantly reduce, and possibly eliminate, certain discounts that are typically taken when valuing interests in family owned entities for gift, estate and GST tax purposes, including discounts for lack of marketability and minority interest. In short, the regulations would make it more difficult for a taxpayer to transfer such interests to other family members free of transfer taxes.

    The regulations will, in general, apply to transfers of interests in family owned entities occurring on or after the date the regulations are published as final regulations. A public hearing is scheduled for December 1, 2016, and we anticipate the commentary that will be provided at such hearing will be critical of the regulations and may result in changes. Nonetheless, we are proceeding under the assumption that the regulations will be published as final regulations sometime in 2017.

    If you are in the process of transferring interests in a family owned entity to, or in trust for the benefit of, another family member, or if you are contemplating doing so, we recommend completing such transfer as soon as possible.

    If you would like to obtain more information regarding the proposed regulations, please contact one of our Wealth and Succession Planning attorneys.

    Karen K. MacKay, (312) 840-7009, kmackay@burkelaw.com

    Mary K. McWilliams, (312) 840-7081, mmcwilliams@burkelaw.com

    Jonathan W. Michael, (312) 840-7049, jmichael@burkelaw.com

    Martin P. Ryan, (312) 840-7060, mryan@burkelaw.com

    Melanie L. Witt, (312) 840-7041, mwitt@burkelaw.com

    Anna Kardaras, (312) 840-7091, akardaras@burkelaw.com

    Gregory M. Winters, (312) 840-7059, gwinters@burkelaw.com

      Related Professionals

              * Anna G. Kardaras
                Partner
              * Mary Kruit McWilliams
                Partner
              * Martin P. Ryan
                Partner
              * Gregory M. Winters
                Partner

      Related Practices & Industries

          * Tax Advisory Services
          * Wealth and Succession Planning

    Sign-Up

    Subscribe to receive firm announcements, news, alerts and event invitations.

    Subscribe

Jump to Page
      * 
      * 
            * 330 North Wabash Avenue, Suite 2100
              Chicago, Illinois 60611-3607
          |
            312.840.7000
    * Home
    * Manage Cookie Settings
    * Disclaimer
    * Privacy Policy
    * Site Map
    * © 2026 Burke, Warren, MacKay & Serritella, P.C.
    * Site by Firmseek

      By using this site, you agree to our Privacy Policy and our Disclaimer.

    Manage Cookies Reject Cookies Accept and Close

    Cookie Preference Center

    Close

      Your Privacy

      When you visit our website, we use cookies on your browser to collect information. The information collected might relate to you, your preferences, or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. For more information about how we use Cookies, please see our Privacy Policy.

          Strictly Necessary Cookies

            Always Active

        Necessary cookies enable core functionality such as security, network management, and accessibility. These cookies may only be disabled by changing your browser settings, but this may affect how the website functions.

          Functional Cookies

            Always Active

        Some functions of the site require remembering user choices, for example your cookie preference, or keyword search highlighting. These do not store any personal information.

          Form Submissions

            Always Active

        When submitting your data, for example on a contact form or event registration, a cookie might be used to monitor the state of your submission across pages.

        Analytical Cookies

          On Off

      Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.

        Powered by
      Confirm My Choices