Filbrandt Vlog: Biden's Tax Plan, Part II
Noah Tostrud, CFP® delves into part two of the new administration's proposed tax plans, including a two-pronged change to the federal estate tax. Watch the video below or read the full report (here).
Hi. My name is Noah Tostrud and I'm an Associate Adviser here at Filbrandt & Company. This is Part II of The Filbrandt Report on tax changes we may see under the new Biden Administration. Today we will focus on two of these proposed changes. Number one, the lowering of the estate tax exemption limit and number two, the elimination of the step-up in basis.
First of all, currently very few Americans are subject to estate taxes as the current estate tax exemption limit is $11.7 million per individual. However, under the proposed changes, this limit would drop to $3.5 million per individual, thus subjecting many more people to estate taxes each year. In this report, we look at how you can take advantage of the current estate tax laws before any changes are implemented.
Secondly, we also look at the elimination of the step-up in basis. Currently, when an individual passes away, many of their after-tax assets are "stepped up" to current market values as of the date of their death. This wipes away any capital gains that have accumulated during their lifetime. However, under the proposed changes, this step-up will be eliminated and your heirs would still be responsible for any capital gains that have accumulated over your lifetime.
Click the link in the post and read the report to see steps that you can take now to ensure that the most favorable outcomes occur for your estate.