Defend your monetary heritage – elegantislandliving.web

The federal estate tax has been on the Endangered Species List for several years, but several Washington Congressmen are hoping to revive this seldom-seen tax. Before you stop reading because you believe that “this tax only applies to the super-rich”, consider (1) what is in your taxable assets: bank accounts, stocks, homes and other real estate, retirement accounts, life insurance, businesses , Private property, etc. and (2) an inheritance tax rate of 50%. Consider inheritance tax laws to ensure your financial inheritance is passed on to your family and named beneficiaries, not the government.

Exemption from federal estate tax:

CURRENT LAW: The current state inheritance tax exemption is $ 11.7 million; this amount will expire on December 31, 2025 and will be reset to $ 5 million after adjusting for inflation.

PROPOSED PLAN: Not many details are detailed, but there is evidence that the proposed inheritance tax exemption will be reduced to $ 3.5 million.

Increased income tax base in the event of the death of a natural person:

PRESENT TAX LAW: For most assets, the income tax base is adjusted or “upgraded” to the market value of that asset on the date of death. This allows the family and beneficiaries to avoid large capital gains on the sale of the valued asset if it is sold shortly after death.

PROPOSED PLAN: Eliminate Income Tax Base Adjustment, with the exception of certain assets that can be increased to $ 1,000,000.

Congress has made proposals to eliminate planning strategies that have long been used to maximize what is passed on to family members upon death, but all – or 50% of the estate tax – is not lost yet! Before tax changes, there are currently opportunities to make or change plans. Consult with your attorney, CPA, and financial advisor to develop your plan this year and be ready to pull the trigger when or when the time comes.