Waxman said his “docket is very busy” arranging for third-party appraisals of private businesses and real estate. The goal is to give, lend or sell the assets -- at prices reflecting the economic slowdown -- to trusts or other structures benefiting future generations.
November Elections
There’s also the threat that tax laws could change if President Donald Trump is defeated in the November elections. Former Vice President Joe Biden, the Democrats’ presumptive nominee, has proposed closing estate-tax loopholes.
Americans will inherit an estimated $764 billion in 2020, and pay an average tax of just 2.1% on that income, according to a study by New York University law professor Lily Batchelder earlier this year.
“If you think Trump is a one-term president, you would be doing even more of these transfers now,” said Megan M. Burke, an accounting professor at Marist College.
So far, the super-wealthy aren’t so hurt by the crisis that they worry about giving away too much, Stein said.
“For most of our clients, their assets are way more than sufficient to weather the storm and then some,” he said.
In fact, pandemic-induced lockdowns mean that many once-busy rich people find themselves with lots of time to maximize estate plans. Stuck at home, wealthy entrepreneurs finally have a moment to think about the next generation.
“It’s a little crazy -- I’m busier now than I was before this pandemic,” said Jim Bertles, managing director at Tiedemann Advisors. “It’s because clients and prospective clients reaching out to us have a lot of time on their hands.”
This article was provided by Bloomberg News.