Will The Basic Exclusion amount Be Lowered For Estate/Gift Taxes in 2021?
President Biden Proposes Lowering The Basic Exclusion Amount For Estate/Gift Taxes – What Does This Mean For Your Wealth?
With President Biden now in office, many are expecting Congress to enact changes to gift, estate and/or income tax laws to generate revenue. What are some of those changes and what do they mean to the state planner?
President Biden has proposed lowering the basic exclusion amount for estate/gift taxes, which was almost doubled in 2017. The exclusion amount in 2017 was $5.49 million and in 2020 it was $11.58 million. For spouses, that amount is basically doubled to approximately $23 million. During his campaign, Biden proposed lowering the exclusion amount to $3.5 million and increasing the potential estate tax from 40 percent to 45 percent. Some have predicted that Congress will reduce the exemption to $5 million, which was the amount of the exclusion (adjusted for inflation) before the Tax Cuts and Jobs Act of 2017.
Either way, this could result in a tremendous tax hit for the extremely wealthy. That is why many estate planning attorneys are advising their clients with great wealth to make gifts … Read More... “ESTATE TAX CHANGES AHEAD? THE TIME TO GIFT MAY BE NOW…”