Income tax basis estate planning has been getting a renewed focus among estate planners. These adjustments are being made by estate planners because the gradual increase in the estate and gift tax exemption amounts has been changing consumer demand for estate planning services. High-net-worth individuals that are exempt from federal estate taxes will want the future income tax benefits of the step up in cost basis. “In fact, for some clients, the rising exemptions and decreasing transfer tax liabilities have created a situation where leaving certain assets in an estate just to get the step up at death effectively has no penalty anymore.” Estate planners will want to consider this as an option when developing their skills. Planners will need to continue to adapt to the constantly changing legal atmosphere to be able to provide their clients with quality estate planning services.
See David H. Lenok, Free-Basing for Estate Planners, Wealth Management, January 14, 2016.
