Worcester estate planning attorneys assist many clients in facilitating the timely and cost-effective transfer of assets to the new owners who will take ownership after a death. There are many considerations that can affect the best way to transfer assets, but one big issue that frequently arises is the need to avoid estate tax.
State and federal estate tax can result in an estate paying a substantial amount of assets to the state instead of that money passing on to heirs or beneficiaries. The Law Offices of James A. Miller, P.C. can provide help in trying to minimize estate tax as much as possible, so it is vitally important for individuals with larger estates to work with Worcester estate planning attorneys for help.
Soon, however, it is possible that federal tax rules could change so those who are making an estate plan will no longer need to worry about their money being taken by the federal government after they pass away. This is because President Trump has proposed repealing the federal estate tax. While it remains to be seen if this law goes through, it is important to understand how the law does change and evolve when it comes to estate tax so you can make plans based on the most current applicable law.
The Law Offices of James A. Miller, P.C. can provide advice on whether or not your estate will be subject to tax and can assist you with the creation of a comprehensive plan to reduce the taxes due or avoid a tax bill altogether.
Will President Trump’s Tax Reform Impact Federal Estate Tax?
President Trump put forth a tax reform proposal as a part of his campaign for the presidency and he has also announced a plan for reforming the tax code now that he has been elected to office. The Hill reported that President Trump’s proposed tax plan would change many different aspects of the personal and corporate tax code within the United States. One big change that President Trump is proposing is to repeal the federal tax that is currently charged on large estates.
There are many arguments for why the estate tax should be repealed. When the tax is assessed and paid by an estate after a death, typically the assets that are being taxed have already been taxed during the deceased person’s lifetime. Income is taxed when acquired, investment gains are generally taxed, and sales taxes and/or transfer taxes are paid when property is acquired. Some argue that it is not fair for assets to be taxed again after death when the government already collected.
There are also concerns that when an estate is passed on to heirs or beneficiaries that appears valuable because of business assets or farm land that has gone up in value, there may actually not be a lot of liquid assets in the estate. If there is not enough money in the estate to pay the taxes that are due to the federal and the state government, it is possible that a business would need to be sold or that family farm land could end up needing to be sold. These are obviously very undesirable outcomes and it could be a big problem in families when this happens.
Trump’s plan to repeal the estate tax is not the first plan of its kind to be proposed. It is unclear if the votes are there for tax reform or not, so it will be important to carefully monitor whether any changes to estate tax rules do occur on the federal level.
Getting Help from Worcester Estate Planning Attorneys
The Law Offices of James A. Miller, P.C. can provide help with all of your estate plan needs. We can help you to work within the current laws and to keep updated on all federal and state rules that could potentially change how your estate is treated after you pass away. To find out more about the ways in which our legal team can assist you with all of your legacy planning and tax planning processes, join us for a free seminar.
You can also give us a call at 866-370-3888 or contact us online to get personalized advice on whether estate tax is an issue for you and on what you can do in order to avoid having your estate taxed by the state and federal government. Call today to make your plans so your heirs or beneficiaries don’t unexpectedly lose a substantial amount of assets because your estate must pay a large tax after you pass away.
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