The 2020 Election and the Effect on Current Gift, Estate and Generation-Skipping Transfer Taxes – Due to the election results and President Joe Biden taking Trump’s position in the Oval Office, conversation continues to grow surrounding the area of taxes and estate planning.
As many are aware of by now, Biden has brought forth a few proposals that will greatly impact estate planning for Americans.
Gift tax, estate tax and generation-skipping transfer are among federal taxes that would be affected if Biden’s proposals took effect.
“The gift tax (which applies to lifetime transfers) and estate tax (which applies to transfers at death) are “unified,” meaning that a single rate schedule applies to both taxes and there is a single “exemption” amount that each individual may transfer during life or at death without paying gift or estate taxes. The GST tax is an additional tax imposed on certain transfers made to persons more than one generation below the donor. The GST tax applies to transfers during life and to transfers at and after death.”
Under current law, gift, estate, and GST exemptions are currently at $11.7 million. These rates are expected to “sunset” on January 1, 2026. However, if Biden’s proposals are adopted and implemented, the rates could return back to $5 million before 2026.
Although it is not clear what changes will be adopted or made in the tax arena, it is important to stay updated and informed of what is going on.
Some things to consider:
- Retroactivity and risk
- Disclaimer
- Marital deduction
- Loans and forgiveness
Article Written by: Gerry W. Beyer
Did you enjoy reading, The 2020 Election and the Effect on Current Gift, Estate and Generation-Skipping Transfer Taxes? Interested in learning more about this subject? Attend our upcoming estate planning webinars!
Have You Properly Protected Your Loved Ones? (FREE Estate Planning Workshop)
Watch this short youtube video on Estate Planning During the Time of Coronavirus!
Join us for a free Trustee and Power of Attorney Training School Webinar, Medi-Cal Webinar, and/or Probate Webinar. Get registered today for our estate planning webinars!
This website is not intended to be a source of solicitation or legal advice. General information is made available for educational purposes only. The information on this blog is not an invitation for an attorney-client relationship, and website should not be used to substitute for obtaining legal advice from a licensed professional attorney in your state. Please call us at (626) 403-2292 if you wish to schedule an appointment for a legal consultation.
For more information about The Hayes Law Firm, visit our Google My Business page.
Thank you for Reading, The 2020 Election and the Effect on Current Gift, Estate and Generation-Skipping Transfer Taxes!
- Clawing Back Assets After Probate - June 3, 2023
- How to Create a Business Succession Plan - June 2, 2023
- IRS Announces HSA Limits for 2024 - June 1, 2023
Office hours
Map
The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.