Tag Archives: Jonathan Blattmachr

New Estate Tax Rules May Face Opposition from Taxpayers and Their Advisors

The IRS may be heading for a fight with taxpayers as a result of proposed regulations which are meant to limit certain estate and gift tax planning strategies.

The regulations (REG-163-113-02) were issued on August 2nd, and they place restrictions on the use of “valuation discounts” which have the effect of lowering the overall value of assets in family-owned businesses. As a result, the decedent’s estate’s value, and therefore the gift tax liability, are reduced at the time of death. The way the IRS achieves their goal is by disregarding the limitations that allowed taxpayers to use such discounts before.

Principal at Pioneer Wealth Partners’ estate advisory group, Jonathan Blattmachr, foresees that, in terms of authority, the IRS and the Treasury department “will be ‘viciously’ attacked by taxpayers and their advisors.”

Yet the Tax Court could uphold the new regulations. The deference doctrine that was established 30 years ago by the Supreme Court decision of Chevron USA Inc versus Natural Res. Def. Council could be the precedent for upholding the regulations.

Blattmachr added that as far as the elimination of valuation discounts, the proposed regulations “would seem to eliminate minority (or lack of control) discounts for all family ‘controlled’ entities including active businesses.”

Upcoming Estate Planning Conference

The Ave Maria School of Law Estate Planning Conference is now welcoming sign-ups. This will be the third annual year of the conference and it’s taking place on May 6, 2016 at the Ritz-Carlton Gold Resort in Naples, Florida.

The event will be featuring Jonathan Blattmachr of Pioneer Wealth Partners and Stacy Eastland of Goldman Sachs. The evening before, on Thursday, May 5th, there will be an evening with Jonathan Blattmachr which will include a talk about “What the Number One Estate Planner in the US Has to Say to Affluent Friends and Their Advisors.” The next morning, the keynote address will be about “Innovative Strategies for Life Insurance and the Use Thereof,” “Pulling the Rabbit Out of the GRAT Hat,” and a speech about “From Cyberspace to Office Space.”

Speaking sessions during the day from Mr. Eastland will include: “Pulling the Rabbit Out of the GRAT Hat: Some of the Most Creative Structural GRAT Planning Ideas We See Out There,” “What We Wish We Knew When We Started Practicing Law-Non-Tax and Practical Advice for Estate Planners Young and Old,” and “Planning for Intellectual Property Rights and the Creators Thereof.” Those from Mr. Blattmachr will include the pre-conference evening, “Innovative Strategies for Life Insurance and the Use Thereof “ and “What We Wish We Knew When We Started Practicing Law-Non-Tax and Practical Advice for Estate Planners Young and Old.”

The conference is perfect for estate planners including trust officers, attorneys, accountants, insurance advisors and wealth management professionals.