Sunday, November 20, 2016
With a recent Republican clean sweep heading to the White House, all eyes are on Washington for the potential elimination of the estate and gift taxes. Repeal of the estate and gift taxes is not entirely certain, but given such uncertainty, the world of estate planning has an unknown future. If the estate tax is repealed, the focus of estate planning would no longer be estate tax planning but asset protection planning. However, if there is no carryover cost basis and step-up basis in the remains, then it can be damaging to remove the assets from the estate as opposed to retaining the property and enjoying a step-up in basis at death. Ultimately, estate planning will be at a standstill for the next several months until it becomes obvious how the Republican Party will deal with the estate tax.
See Jonathan G. Blattmachr & Martin M. Shenkman, The Future of Estate Planning and Potential Repeal Under President Trump, Nerd's Eye View, November 16, 2016.