Four Planning Strategies for An Uncertain Estate Tax Future
The current federal estate tax has gone through a constant stream of changes over the past few decades. There have been attempts to repeal the tax, changes to the exemption amount, and changes to the tax rates.
In recent years the changes have favored reduced taxes, but this has not always been the case. During times of national crisis there have been significant tax increases. In fact, President Biden campaigned on reducing
the exemption amount to as low at $3.5 to $5 million and increasing estate and gift tax rates. Furthermore, his budget proposals since taking office have included provisions that would require gain recognized at death and on
lifetime transfers. Even if nothing is done, the current exemption will expire on January 1, 2026, going back to the 2018 level of $5 million (with index adjustments).
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