No Federal Estate Tax?

On April 16th, 2015 the U.S. House of Representatives voted overwhelmingly to repeal the federal estate tax.  Is this the death knell for the death tax?  Probably not this year.  But if there is a Republican President after the 2016 election, and the Republicans control the U.S. House and Senate, there may very well be a repeal of the estate tax.  The interesting thing to see is what other changes may be enacted if  that is the case.  For example, in 2010 when there was no estate tax, there was a limit on the amount of assets that would receive a “step-up” in basis.  This kind of idea has been pushed by President Obama who would like to see the basis step-up limited to $3,500,000 per person; and is certainly in the consciousness of many of those who do not want to see the estate tax abolished.  We will have to wait and see, but there is little doubt that there will be tax law changes in the future, just as there have been in the past.  It is important to review your estate plan with your attorney to ensure that what you drafted many years ago, still is the best plan for you. read more