President Biden’s estate tax propositions could have a big impact on Estate Planning. Being prepared for these possible changes can help protect your estate.
In our previous videos, we discuss the estate tax exemption amount, gift tax exemption amount for 2021, and the step-up in basis. I’m here today to talk to you about the differences between the current law as it is right now and the proposal that President Biden made while on the campaign trail.
Here are a few of his new tax proposals:
Reducing the Estate Tax Exemption Amount
The current estate tax exemption amount is 11.7 million dollars. However, President Biden has proposed reducing the estate tax amount to either 5 million dollars per person, 3.5 million dollars per person, or even below that amount.
Reducing the Lifetime Gift Tax Exemption
He also proposed reducing our lifetime gift tax exemption amount to 1 million dollars.
Eliminating the Step-Up in Basis
The third thing he talked about was eliminating the step up in basis. A step-up in basis is the readjusted value of an asset at the time of death.
Stayed stay tuned for future videos that further discuss President Biden’s tax proposals.