New administration new rules?

2021 is almost a quarter over. One thing that happens during an election year is people asking if there will be any major tax or estate planning changes. I have found in my career of nearly two decades that very rarely do things change very drastically. That being said, there are two things to focus on this year.

ESTATE TAX

One deals with the estate tax itself. Right now, the exemption on estate tax is over $11 million dollars. Obviously at that number it doesn’t affect too many people. We always want to keep an eye on this to see if this number will change. It has increased for many years, but there could be a reset to lower the amount again. This would involve more planning concerns for people. If this changes, I will be sure to let everyone know so that any recommended estate planning updates or changes can be taken.

STEPPED UP BASIS

The other item to discuss this year is the stepped up basis on inherited assets. Currently, when people inherit assets, they pay capital gains on what the asset was at time of death versus what it is sold for currently. Doing away with this would make the gains tax due on what the asset was at the time it was purchased or acquired by the deceased versus what it is sold for. This could lead to quite an increase in taxes for some people. We can always make changes to our plan to help us provide for these changes, but we must be aware and update as necessary. Once again, if this actually changes, I will be sure to let people know!

In conclusion, keep up to date with current changes in tax and estate planning laws by following my blog and web page.  Often, when things change we find opportunities for growth and change exist. These are good times to review and update!

http://www.olmstedohiolaw.com

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