The GOP definitely wants to get rid of the estate tax. House Speaker Paul D. Ryan commented, “We just think it’s unfair. Death should be not a taxable event, and we should not be stopping people from being able to pass their life’s work on to their kids.” Whether you agree or disagree, individuals previously subject to the estate tax stand to gain some impressive advantages under the new tax plan. Besides passing their wealth free from tax, high-net-worth individuals will also be able to transfer wealth to heirs with a step-up in basis. So, if someone were to pass away with $1 million in stocks that they purchased for $100,000, the beneficiary of the stock would be able to immediately sell the asset with no ensuing capital gains tax. Along with these changes, passage of tax reform will likely have a substantial impact in many areas, estate planning not excluded. But, even with these dramatic alterations, the overall planning process remains the same. What is most important is that individuals seek out professional guidance to help them with their estate, regardless of what the upcoming tax future may be.
See Inna Fershteyn, The GOP Tax Plan’s Effect on Estate Planning, Brooklyn Trust and Will.com, December 9, 2017.
Special thanks to Alexander Evelson for bringing this article to my attention.
