California Estate Planning Blog by Kevin Staker

December 20, 2016

Estate Tax May Be Repealed by Kevin Staker

Filed under: estate tax news,estate tax repeal,Kevin Staker — Kevin Staker @ 3:48 pm
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Estate Tax May Be Repealed, Believe It or Not

by Kevin Staker

Since the estate tax exemption was raised to $5,000,000 in 2010 I had told clients I thought the estate tax would never be repealed.  I believed that there would never be  60 Republican senators, the number needed to overcome a filibuster in the Senate by the Democrats.  It appears I was wrong.

Turns out only 51 Republican senators are needed if tax reform is enacted under “budget reconciliation”.  This is how the Democrats passed Obamacare, the Affordable Health Care Act, by a mere majority in 2010.

The Republicans have 52 votes in the Senate.  The Republican majority House of Representatives favors estate tax repeal.  Their plan, “A Better Way”, states they want to “repeal the Death Tax so that the loss of a family member will no longer be a taxable event.  See https://abetterway.speaker.gov/_assets/pdf/ABetterWay-Tax-Snapshot.pdf

President (presently elect) Trump favors estate tax repeal:

Death Tax

The Trump Plan will repeal the death tax, but capital gains held until death and valued over $10 million will be subject to tax to exempt small businesses and family farms. To prevent abuse, contributions of appreciated assets into a private charity established by the decedent or the decedent’s relatives will be disallowed.  (See https://www.donaldjtrump.com/policies/tax-plan/).

Hence, I, Kevin Staker, must admit I was wrong.  The federal estate tax will now be likely repealed.

By Kevin Staker

 

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