Estate Taxes

Our world is a different one from that of just a few years ago.

Estate tax experts and other commentators have projected that we can expect at least some future change in the nation’s tax laws to address increasing deficits resulting from the pandemic and related stimulus packages.

As you may have heard, there has been some movement in Congress in the past few weeks that will likely impact these exemptions. The recently proposed “For the 99.5%” Act would bring sweeping changes to the taxation of estates, lowering the exemption from its current high of $11.7 million to $3.5 million, and increasing the federal estate tax from a fixed 40% to a graduated rate schedule from 45% to 65%. Yet another proposal, the “Sensible Taxation and Equity Promotion” (STEP) Act, would eliminate the step-up in basis that inherited assets currently enjoy.

Sax advisors look forward to working with you to set up structures that will take advantage of the unusually high federal exemption from gift/estate taxes ($11.7 million per taxpayer currently) and protect future generations of your family.