With the lifetime exemption per person currently in 2020 at $11.8M, a married couple can pass a $23.6M estate tax-free to their heirs.
For most Americans, estate taxes are therefore no longer a problem, but that is not true of car dealers, with the value of dealerships having escalated considerably.
Unless you have a plan in place which will allow your estate to be able to pay your estate taxes, your dealership succession plan could be in danger!
Dealers need to be concerned, since the estate tax exemption is scheduled to revert to 2017 levels – $5.4M per person, unless Congress acts to extend the law before the end of 2025.
This reduction in the exemption would result in most dealers being subject to paying estate taxes.
A Structured Plan to Help You Remain in Control of Your Assets –
The following planning technique can help you to utilize your lifetime exemption without having to transfer assets before you are willing to do so.
Spousal Lifetime Access Trust –SLAT is a planning vehicle that allows you to minimize your estate taxes while maintaining access to your assets during your lifetime, for those dealers who are married.
Click the following link to read Hugh Robert’s post on the Digital Dealer website titled: Estate Taxes – Still a Problem for Succession
Read the article and then reach out us to get some insights on your own situation. Even if you don’t become a client, a few moments with us may help you save years of difficulties. Contact Us
Contact us and we can help you with insights, other resources, and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business right away.