Estate and Family
Wealth Planning
Time to Review Your Estate Plan
David Heilich, CPA, AEP
President Donald Trump has proposed repealing the
death tax, but capital gains held until death and valued
over $10 million will be subject to a capital gains tax.
It is unknown whether this amount would be per taxpayer
or per married couple. To prevent abuse, contributions
of appreciated assets into a private charity established
by the decedent or the decedent’s relatives will be
disallowed. An exemption may still apply for assets
transferred to a surviving spouse, deferring the tax until
their death.
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The Current System vs. Trump’s Proposed Changes
The Taxpayer Relief Act of 2012 instituted a $5 million
combined estate and gift tax exemption and generation-
skipping tax exemption, indexed each year for inflation.
In 2017, these exemptions were increased to $5.49
million with a tax rate of 40 percent. The Act also permits
portability, which is the transfer to the surviving spouse
of any unused estate tax exemption if a valid election is
made.