2. The Exemption for estate tax and GSTT would double to 11.2 million per individual and applies to those decedents dying after 12.31.17.
3. Gift tax would remain at a rate of 40%.
4. In 2028, the Exemption would revert to $5.6 million plus inflation per individual. This would comply with the Byrd Rule.
ADVICE: Obviously, no one knows what the final legislation will contain. Keep a close eye on this legislation, especially if you have a taxable estate now and perhaps will not have a taxable estate after the legislation. Further, if you have a large estate and the exemption doubles you will want to take advantage of gifting. Of course, you will also have to consider changes that could take place after the next election.
WORD OF THE WEEK: The Byrd Rule restricts what can be included in certain Senate legislation. This rule prohibits provisions that are “extraneous” to the budget. Thus, such a bill can not include non-budgetary provisions that supporters might wish to include to make such provisions easier to pass. A provision is considered extraneous if it does not produce a change in outlays or revenues, increases the deficit beyond the “budget window” or makes changes to social security.
The Byrd Rule has led Congress to pass legislation that “sunsets” or expires within 10 years, to avoid the prohibition against increasing deficits beyond the budget window. Although the Byrd Rule only applies in the Senate, it can deter the House from including provisions in its reconciliation bill that are likely to violate the rule and be struck from the legislation in the Senate.
GENEROSITY IS A KEY TO HAPPINESS …REACH OUT AND HELP SOMEONE TODAY! 😎