Included in President Obama’s proposed tax law changes during his State of the Union Address was the elimination of “step-up” basis. The purpose of the proposal is to close the “trust fund loophole.” However, the end of step-up basis may create a rise in the popularity of trusts by adding additional tax advantages for the use of trusts, which declined with the increase of the Federal estate tax exemption and addition of portability.
See Janet Novack, Obama Attack On “Trust Fund Loophole” Could Increase Tax Advantage of Trusts, Forbes, Jan. 20, 2015.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
