By Tom Wheelwright
President Biden’s Build Back Better plan has an abundance of tax changes that, if implemented, could significantly decrease the amount of wealth that you can leave to your family. These potential changes are a great reason to begin reevaluating your estate planning now before it’s too late.
What’s at Stake?
So, why is estate planning so critical at this moment? Biden has proposed that the estate and gift tax exemption essentially be cut in half. Currently, the exclusion is $11.7 million, meaning that if your estate is under that amount, you won’t owe the estate and gift tax and anything over that amount will be taxed at 40 percent. If the new proposal is passed, the exemption would be lowered to $5 million with the tax being implemented on all deaths and transfers.What Can Be Done to Protect Your Assets?
Estate planning is a key part of asset protection as there are quite a few ways to legally reduce your estate and income taxes. A great tax advisor will take the time to understand you, your business, and your relationship with your family to create an effective tax strategy. What many people don’t realize is that your family can play a large role in the tax strategy as assets can be passed to children prior to death, which can eliminate taxes.
Every family's situation is unique, so the best way to handle estate proceeds will vary. Renae Wang
