Obama Administration Proposes Elimination of Estate Tax “Loopholes”
- Posted in: Estate Planning
The government has plans for your children’s inheritance.
The particulars of the estate tax have been in flux, and have been the subject of much debate over the past few years, with the only constant being that there always is an estate tax. And now the Obama administration is proposing more changes to the estate tax; changes that would result in $60 billion in new tax increases over the next 10 years on wealthy estates, to be exact.
According to the administration itself these are not actually tax increases, but merely the elimination of “tax loopholes”. The elimination of these loopholes “would raise an estimated $24 billion over 10 years by tightening estate-tax rules, giving taxpayers less flexibility to minimize their liability on inherited goods by claiming a different value on the same item for different transactions.”
Wealthy estates are not the only parties to be effected by the proposed changes; business owners will find themselves hit as well by “a second element…which would require businesses and others who make payments to corporations to report such payments to the Internal Revenue Service.”
Forewarned is forearmed. Whether you have a plan in place already or are only now motivated to create one, our firm can help you weather these proposed changes, and help you continue to protect your estate and your children’s inheritance.