32 THE QUEENS COURIER • QUEENS BUSINESS • AUGUST 12, 2021 FOR BREAKING NEWS VISIT WWW.QNS.COM
queens business
MetroPlus Health opens new Flushing location
BY DEAN MOSES
editorial@qns.com
@QNS
An opening for the ages.
MetroPlus Health looks to play a major
role in the COVID-19 recovery process
with a new, fl agship Queens location.
It was cause for celebration last week
as a slew of elected offi cials and famous
faces arrived at 136-13 Roosevelt Ave. to
mark the opening of MetroPlus Health in
Flushing. With the pandemic remaining
a threat due to the delta variant, the aff air
was designed to allow a community particularly
hard-hit over the last year to take a
much-needed respite while also reminding
those in need they have access to aff ordable
and even free healthcare coverage.
“Everything inside was secured by local
Flushing small businesses. I am super
proud of that, and I think that was a really
smart thing in terms of aiding the
recovery of small businesses throughout
Flushing. Th e best way to do that is to
actually be patrons, and so our dim sum
and the dancing lions — every single
aspect of this event has been done in partnership
with the Flushing BID and a variety
of small businesses to make sure this
is a celebration not just for MetroPlus,
but for the Flushing community as a
whole,” Chief Brand offi cer Lesleigh Irish-
Underwood.
Th e grand opening began with a ribbon
cutting by President & CEO of
MetroPlus Health Dr. Talya Schwartz,
Congresswoman Grace Meng,
Councilman Peter Koo, and several representatives
from local elected offi cials who
christened the ground with shining scissors
as traditional lion dancers majestically
cantered to the sound of drumbeats.
Following the opening ceremony, the
attending politicians expressed their gratitude
for MetroPlus Health continuing to
serve those who need them most and presented
Schwartz with citations and certifi
cates. Guests were treated to locally
prepared dishes as renowned disk jockey
and MetroPlus member DJ Whutever
entertained with his spinning skillset. Yet
despite all of the fun and pageantry, Dr.
Schwartz told amNewYork Metro that it
is important to remember why they are
there.
“We are here to serve New Yorkers, particularly
vulnerable New Yorkers, and
there are a lot for Asian New Yorkers
who were disproportionately impacted
by the pandemic, physically, emotionally
and fi nancially. It is important for us
to be here, to make sure that those New
Yorkers have access to healthcare, have
access to coverage, and don’t have medical
care only when there is an emergency
but actually take preventative measures
before there is an emergency. It is important
we serve needs that also impact their
health such as housing and food insecurity
and eviction protection,” Schwartz said.
Elder Law Minute TM
Valuation and the gifting of closely held family business interests
BY RONALD A. FATOULLAH, ESQ.
AND MARILYN Q. ANDERSON, ESQ.
After spending a lifetime building and establishing
wealth in the form of a closely held family business,
the last thing an entrepreneur wants to see is
a forced sale of business assets or a diminishment
in the liquid assets passed on to the next generation
due to the payment of estate taxes. While the
Federal Estate Tax Exemption amount is currently
$11.7 million per individual and the New York State
Estate Tax Exemption amount is $5.9 million per individual,
for those who pass away in 2021, these numbers
may change drastically under proposed new tax
legislation.
If an estate is likely to be subject to estate taxes,
careful planning can help to avoid the unnecessary
payment of such taxes. While there are many estate
planning devices that can help reduce the size of
a person’s overall estate including lifetime gifting,
keep in mind that lifetime gifting over the annual
gift exemption amount of $15,000 will chip away
at one’s federal lifetime estate and gift tax exemption
amount. Often, the owners of closely held family
businesses will desire to transfer interests in their
company to their family or to trusts during their lifetime
as part of the estate planning process.
Minority valuation discounts are a planning device
currently available that can be quite useful in the
ELDER LAW
transfer of ownership interests in closely held family
businesses. There is concern that new legislation
might aff ect the availability of this strategy. As most
people are aware, the controlling interest in any company
is a highly valued asset. The person who owns
the majority of the shares in a corporation or the largest
percentage of ownership in an LLC can control the
future and direction of the company, as a majority
owner will generally have the ability to outvote the
smaller stakeholders. A minority interest in the same
company is not as valuable to an individual, since
the individual’s opportunities for control and infl uence
are decreased. Based on this concept, the transferring
or gifting of a minority interest in one’s closely
held family business can be valued at a discount.
But what is the value of my business, one may
ask, and how can I avoid a costly battle with the IRS
over the valuation of my business? Often, no matter
what appraisal you provide, the IRS may come up
with a diff erent valuation of the interest. One way to
avoid this issue is to defi ne the value of the gift in the
transfer documents as “the fair market value as fi nally
determined for gift tax purposes.” You can include
in the gift tax return documents submitted to the IRS
the estimated fair market value of the transferred
interest based on your appraisal, and if in three years
after the submission of the gift tax return the IRS has
not audited your return, your estimated value is now
able to be protected as the actual value of the transfer.
If the IRS does audit the gift return, there may still
be an opportunity to negotiate with them as to the
valuation of the transferred interest.
Remember that transactions between family
members, whether they be gift or sale, or sales based
on promissory notes, are often looked at scrupulously
by the IRS to determine whether the transaction was
done at fair market value and whether the appropriate
formalities were observed. If a family loan is
used to help the sale of a business interest to a family
member, and the family wishes for the IRS to respect
the characterization of the transaction that was given
to it by the individuals involved, be prepared for the
IRS to ask for loan documentation, proof of principal
and interest payments, and evidence that the other
formalities of a true loan were respected.
Overall, there are many ways to transfer one’s family
business on to the next generation and to protect
the value of the asset from estate and gift taxes. If
you have a closely held family business and are seeking
estate planning advice, be sure to discuss openly
with your estate planning attorney the assets held
by the business, whether it is an active running business
or a passive interest, any recent appraisals of
the value of the business, the tax reporting status of
the business, recent tax returns that were fi led on its
behalf, and whether you desire that the business be
sold by an estate representative or that the business
continue forward as a family legacy.
Ronald A. Fatoullah, Esq. is the founder of Ronald
Fatoullah & Associates, a law fi rm that concentrates in
elder law, estate planning, Medicaid planning, guardianships,
estate administration, trusts, wills, and real
estate. Marilyn Q. Anderson, Esq. is an attorney at the
fi rm. The law fi rm can be reached at 718-261-1700,
516-466-4422, or toll free at 1-877-ELDER-LAW or
1-877-ESTATES. Mr. Fatoullah is also a partner with
Brightside Advisors, a wealth management fi rm with
offi ces in New York and Los Angeles.
This summary is not legal advice and does not create
any attorney-client relationship. This summary
does not provide a defi nitive legal opinion for any factual
situation. Before the fi rm can provide legal advice
or opinion to any person or entity, the specifi c facts at
issue must be reviewed by the fi rm. Before an attorney
client relationship is formed, the fi rm must have
a signed engagement letter with a client setting forth
the Firm’s scope and terms of representation.
RONALD FATOULLAH
ESQ, CELA*
Photo by Dean Moses
The ribbon is cut at the new Flushing location.
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