How Trump’s Estate Tax Plan Might Impact Families

by Ken Berry | Mar 21, 2017   ()

Both President Trump and the Republican leaders in Congress have advocated a repeal of the federal estate tax. If that occurs, certain tax concerns facing wealthy families would be wiped away, perhaps forever.

But a repeal, if one is indeed enacted, could come with some strings attached, especially with regard to income taxes. In fact, some families may wind up in worse overall tax shape than before.

The federal estate tax has traveled a circuitous route to this point since its inception in 1916. At the turn of the century, the top estate tax rate had reached a hefty 55 percent, while the unified estate and gift tax exemption could effectively shield assets valued at up to $675,000. After the exemption was hiked to $1 million, Congress enacted the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001. And that’s when the fun really began.

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Source: Accounting Web
Source: Accounting Web

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