Now that Joe Biden has been projected as the winner of the presidential election by major news outlets,* you may wonder if your estate plan exemption or possible estate plan taxes will be affected.
Under current law, gifts and estates are not subject to estate or gift tax if they are valued under $11.58 million for a single person or twice that amount for a married couple.
President Elect Joe Biden has expressed interest in rolling back the estate value exemption to $3.5 million for a single person or $7 million for a married couple. The gift tax exemption would fall to $1 million per individual. In addition, increasing the estate and gift tax rate to 45% from the current 40% has been suggested.
If your estate exceeds the proposed 3.5 million or 7 million-dollar tax exempt amounts, we recommend that you review your estate plan prior to the end of 2020. Also, we recommend that you give consideration to contacting your estate planning attorney regarding the potential need to update your estate plan in light of anticipated changes.
Stay Tuned
Partner, Lisa Sessoms, had this to say. “TRP Sumner is here to keep you informed on the developments that could affect your personal and professional bottom lines. Being proactive before the end of the year may be the best advice we can share.”
TRP Sumner has three locations in Fayetteville and Dunn, NC for your convenience. Give us a call or contact us through our website at www.trpsumner.com for more information.
Be Well!
*The Electoral College will certify the election results by December 14, 2020. There also are some ongoing state recounts and legal challenges.