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Matthew Bresette publishes “Wealth of factors make now prime transfer time”

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Boston Business Journal
Matthew Bresette, a member of the firm’s Trusts and Estates practice group, published “Wealth of factors make now prime transfer time” in the Boston Business Journal on June 25. Due to a mix of external factors it is currently one of the best times in history for owners of a private business to consider transferring their assets to their designated beneficiaries. Matt notes a few critical reasons you should be thinking about transferring business assets now:
  • Though the stock market has seen signs of rebound in the past year, public companies continue be valued at the lower end of the scale. The same is true for private, closely held companies. Valuation experts are likely to be able to point to many factors that will provide a lower value for transfer tax purposes.
  • The transaction multiple for earnings before interest, tax, depreciation and amortization is much lower (it was close to 7 in 2007 and close to 6 in 2009 for midsize privately held companies), which directly results in a lower value for gift and estate tax planning purposes.
  • Congress is likely to let the favorable estate and gift tax laws enacted under the Bush administration expire at the end of this year, possibly returning to very harsh 2001 tax levels in January of 2011. Many believe that there might be a retroactive imposition of estate and gift taxes at the 2009 tax levels. In any event, in 2010, there is a gift tax rate of 35 percent, although there is no estate tax.

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