The Trump tax plan would eliminate the gift tax, estate tax and generation-skipping transfer tax, and replace those transfer taxes with a capital gain tax on appreciated assets inherited from the decedent. This would completely change how estate planning is done by replacing the current emphasis on reduction of transfer tax to one which emphasizes planning for the reduction of capital gain taxes.
If the Trump proposals become law, current wills and trusts in larger estates would have to be rewritten because they typically provide for formula bequests based on the estate tax law, which would no longer make sense if estate taxes were repealed. The Trump plan would also render moot the recent proposed regulations issued by the IRS which would eliminate valuation discounts for interests in family entities.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
