The State of Estate Planning After the Election: Obama’s Proposed Estate Tax Plan
The dust has begun to settle after the election - and both the legislative and executive branches are controlled by the Democratic Party. If Obama’s estate tax plan becomes law, the $3.5 million exemption of 2009 would be retained, but amounts in excess of that would be taxed at 45%. The top tax rates of prior years (for dual earners over $250,000 or one earner of over $200,000) would be reinstated 26% or more. Additionally, investors who make more than $250,000 per year would see an increase in the capital gains tax to up to 20%.
Filed under: Current Events, Estate Planning - Generally, Tax