Get ready for it folks, discussions about federal tax legislation are heating up in Washington D.C. Sweeping estate tax changes have been proposed, including higher estate tax rates, and a repeal of the step-up in basis rule.

Although these changes are a long way from fruition and likely won’t be enacted in their current form, now is a great time to consider estate planning strategies so that you're prepared for possible changes:

Plan for a higher estate tax rate. The top estate tax rate of 40% has remained in effect since 2013, but could be increased in conjunction with other changes. A higher tax could expose more assets to estate tax. Consider reducing the size of your taxable estate through lifetime gifts and other strategies.

Plan for eliminating step-up on basis. For estate tax purposes, the value of inherited assets is stepped up to its fair market value on the date of death. Once the heirs sell inherited assets soon after death, there’s usually little or no income tax liability. If this rule is goes away, heirs may face a much higher capital gains tax. 

Call us today 877-6-SOLVER to schedule a in-person or zoom consultation-don’t wait till it’s too late, your family should benefit from the best tax counsel possible.