Preferred Partnership Freeze (PPF)

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Dear Clients, Colleagues, and Friends,  

The economic conditions accompanying the COVID-19 pandemic have created many avenues of change. Out of the decreasing valuation of closely held businesses, investment portfolios and real estate, comes an opportunity that only exists once in a generation. To that end, we introduce you to the Preferred Partnership Freeze (PPF).

The assets you expect to appreciate in the long run can be frozen at today’s lower valuations while shifting the future appreciation into a dynastic trust for future generations spanning 365 years.  For depreciable property, like rental real estate, the PPF combines the best of the estate tax deferral of the “freeze.” It provides for a favorable income tax-free “step up” in basis for capital gains elimination and increased depreciation and amortization at your death.  It is rare that a strategy will allow both. 

The overriding essence of the PPF captures natural discounts associated with the current low interest rates combined with declining asset values created by the pandemic. This accompanying video, as well as this recent Client Alert explains the details of how all of this works. And please know we are here and ready to meet with you virtually to answer any questions you may have.

The bottom line is this once-in-a-generation planning opportunity will not likely be available once we recover from this current crisis – And recover we will!  So now is the time for an action plan, especially while you are hunkering down indoors perhaps with the time and attention to devote to this. Stay safe and stay healthy. 

For more information on setting up a preferred partnership freeze, please contact Jeffrey M. Verdon, Esq. Jeffrey M. Verdon Law Group, LLP  949-333-8143

Posted in Client Alert.