Tuesday, October 27, 2020
As the presidential election approaches, there has been a lot of discussion surrounding the potential tax law changes. Although nothing is for certain, there are many things that certainly could happen, especially if Joe Biden is elected president and the Democrats gain the majority of both the Senate and the House.
Potential Tax Law Changes include:
- Lower Transfer Tax Exemptions
- Higher Transfer Tax Rates
- No Income Tax Basis Adjustment at Death
- Taxation of Capital Gains at Ordinary Income Tax Rates
- Elimination of Other Popular Estate Planning Tools
As the potential tax changes loom about, there are few Year-End Planning Considerations that you should take into account before it is too late:
- Use "bonus" Exemptions Before They Expire
- Use Popular Planning Tools Before They Are Eliminated
- Take Advantage of Low Interest Rates and Depressed Asset Values
- Build In Potential Access to Transferred Funds
- Consider Accelerating Capital Gains
- Do Not Wait Until December 31st
As everyone' situation is unique, some of these considerations may not be worthy of your consideration, but it is always better to consider potential options before the options no longer exist.
See Potential Estate Planning Implications of 2020 Election Results, Winstead PC, October 19, 2020.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.