With renewed focus on how President Elect Biden will implement his tax policy after the U.S. presidency changes hands, many experts expect Biden to shift to a more progressive tax policy including tax rate increases on wealthy Americans and reduction of the U.S. federal estate tax exemption threshold, i.e. the max amount that can be transferred to heirs tax-free before taxes kick in.
Because the current exemption threshold of $11.58 MiL for individuals and $23.16 MiL for couples is anticipated to be slashed to $3.5 MiL and $7 MiL, respectively, wealthy families concerned about their newfound potential U.S. federal estate tax exposure are being advised to take advantage of one of today’s golden age estate tax planning strategies that, if structured and documented properly, will reduce or eliminate thier family’s U.S. estate tax exposure and shift family wealth between generations tax-free.
If you or your clients are concerned about the potential for U.S. federal estate tax liability, please contact me to learn more about proactive estate tax planning strategies that can be used to keep family wealth from being invaded or depleted by federal estate taxes.
