Insights Magazine Volume IX - Page 10

Estate and Family Wealth Planning Time to Review Your Estate Plan David Heilich, CPA, AEP President Donald Trump has proposed repealing the death tax, but capital gains held until death and valued over $10 million will be subject to a capital gains tax. It is unknown whether this amount would be per taxpayer or per married couple. To prevent abuse, contributions of appreciated assets into a private charity established by the decedent or the decedent’s relatives will be disallowed. An exemption may still apply for assets transferred to a surviving spouse, deferring the tax until their death. 8 The Current System vs. Trump’s Proposed Changes The Taxpayer Relief Act of 2012 instituted a $5 million combined estate and gift tax exemption and generation- skipping tax exemption, indexed each year for inflation. In 2017, these exemptions were increased to $5.49 million with a tax rate of 40 percent. The Act also permits portability, which is the transfer to the surviving spouse of any unused estate tax exemption if a valid election is made.