Friday, October 6, 2017
The estate tax is headed for the chopping block according to the most recent release of the Trump administration’s plan for tax reform. Those with over $5.49 million in assets are likely trembling with excitement at the mere possibility of avoiding the draconian 40% tax on their estates. Not everybody shares their excitement though. Robert Strauss, an estate planning attorney, points to the secondary consequences of the current estate tax regime. As it is, many of the ultra-wealthy provide substantial donations to charities in order receive deductions on the amount of estate tax paid. In 2010, when the estate tax was temporarily repealed, donations to charity fell by over four billion dollars from the prior year. Strauss believes that charities “are concerned that donations at the death of a benefactor will be reduced. Advisors need to think more carefully about how to advise their wealthy clients on donations because the rules may change this year.”
See Karen DeMasters, Estate Tax Repeal Could Cost Charities, Attorney Says, Financial Advisor, September 11, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.