Trump Administration Introduces Proposals Affecting Estate Plans - Articles

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Posted by: Jarod Word on Jan 29, 2025

The Trump administration in its first week introduced several proposals that could greatly impact estate planning. Among them is the potential repeal of the federal estate tax, a move that could significantly alter how inherited assets are considered. The tax is set at $13.99 million per individual, with the exemption set to decrease to around $7 million in 2026 per the Tax Cuts and Jobs Act of 2017. Other changes floated include elimination or modification of the stepped-up basis and treating death as a realization event. While none of the administration’s proposals have yet been enacted, the agenda shows a broad policy shift planners should consider, Forbes reports.