This election raises more issues of policy and personal character than can even be listed in one post. An issue which does not get much coverage in the media is the potential impact of the election on estate planning.
Hillary Clinton has taken some firm positions with respect to estate taxes. According to Jeff Brown of CNBC:
Clinton wants to cut the exemption for the “death tax” from $5 million today to $3.5 million, with a 45 percent tax on amounts between that and $10 million. She’d set a 50 percent rate on assets over $10 million, 55 percent over $50 million and 65 percent on amounts exceeding $500 million for an individual, $1 billion for married couples.
Her opponents argue that her plan would injure small businesses. But whether a Clinton victory would mean that she will carry out these proposals is another matter. Brown continues:
Of course, Clinton’s proposals are just planks in a platform. Most experts see little chance they will become law anytime soon, as the odds favor a split Congress even if she is elected and since Republican opposition to tax increases is solid.
Nevertheless, estate tax experts recommend business owners take some precautions under today’s law.
“I recommend that people looking to reduce their estate tax start by gifting money to their children,” Hryck said. “Each individual can gift $14,000 (a year) to each child tax-free, $28,000 as a couple.”
See the entire article here.
Donald Trump, on the other hand, proposes eliminating the estate tax altogether. His opponents assert that his plan is typically the one that would benefit himself the most, but again his ability to actually carry out his proposal would not be great.
So regardless of the outcome, continuing with gifting programs is good advice.
You can contact an attorney at the Law Office of Roger Billings at (916) 786-8706, or by clicking here.