"Many people become reactive when their assets are down." said Frees. They stop doing planning out of fear. But if you stop, the taxes don't just go away. "And, this economy is worse than most people can remember. However, there is a silver lining."
According to David Frees, "When asset values are low it is often possible to transfer homes or vacation homes, business interests and publically traded stock at a very low value." This allows you to transfer more to children and heirs. And, added Frees, "There are also historically low interest rates so it is possible for you to sell or transer an asset and act like the bank but collect very low interest payments." Frees cautioned, that gifting should always be carefully considered and that gift taxes can result unless you use care.
For more information click here to read David Frees' article published on AVVO also realted to gifting in a bad economy.
David Frees practices law in the greater Philadelphia area and has offices in Phoenixville, Paoli and West Chester Pennsylvania. He also has a very high AVVO rating of attorneys in Pennsylvania.
David Frees can be reached at 610-933-8069.