How Trump’s Tax Proposal Affects You
Trump’s new tax proposal makes some changes that could affect your estate planning.
- Both the estate and generation-skipping taxes get the boot.
- What about stepped up basis under I.R.C. § 1014? R.C. § 1014 provides that, for most property, a decedent’s beneficiaries receive a step up in basis to fair market value at the decedent’s date of death. Thus far, the proposed changes don’t affect I.R.C. §1014.
- Regarding retirement, the proposal states, “Tax reform will aim to maintain or raise retirement plan participation of workers and the resources available for retirement.” The proposal does not address questions relating to the possible elimination of stretch inherited IRAs.
Read more at Bloomberg Law Tax Management Weekly Report, October 2, 2017, “Big Six Tax Framework: 5 Policy Decisions” (subscription required).
Post by: Jillian Mastroianni