The Biden Tax Proposal, if enacted, will have a significant impact on estate planning for those who have failed to take advantage of the current gift and estate tax rules. According to the Proposal, estate and gift tax exemption will be reduced from 11.58 million under the current law to $3.5 million. In addition, the Biden Proposal will increase the top rate for estate tax from 40 percent to 45 percent.
The proposed changes to the gift and estate tax exemption and rate increase will largely depend on whether Biden, in fact, becomes our 46thPresident and whether the Republican Party retains control of the Senate.
A new administration may also result in the imposition of a new wealth tax, should Elizabeth Warren become the new Treasury Secretary.
The growing uncertainty should serve as a call to action for those who have failed to do any estate planning. Failure to act prior to January of 2021 creates a significant risk that those with large estates may face a higher tax burden.
If you have not already done so, it is not too late to do so. Please feel free to contact the Law Office of Anthony N. Verni at (561)531-8809 or by visiting my website at https://vernitaxlaw.com