Proposed regulations issued by the Treasury Department in August 2016 under Section 2704 of the Internal Revenue Code seek to limit valuation discounts afforded by family limited partnerships (FLP) and other common planning techniques. The combination of a $5.45 million federal estate and gift tax exemption for individuals plus “exemption portability” rules allowing a deceased spouse’s unused exemption to pass to his or her surviving spouse shield most estates from federal estate and gift taxes. But such taxes are still a major concern to high-net-worth individuals and families because of the 40% tax rate that applies once exclusions have been fully utilized. Thoughtful advance planning is necessary to avoid additional estate and gift tax liability should the proposed regulations become final.