Under current law, if you die with an estate valued in excess of $5.45 million, you pay a tax of 40% on the excess value. Any appreciation inherent in the assets that make up your estate, however, is untaxed at your death; rather, the beneficiaries of your estate take the assets with a tax-free, “stepped-up” basis.
Donald Trump’s proposal would eliminate the estate tax, making the next four years as good a time as any to die, and judging by my twitter feed, many people may not resist that notion. The opportunity to pass a valuable estate on to your heirs tax-free is a rare one; but understand, according to Trump’s proposal, it won’t be completely without tax. His plan would tax the appreciation inherent in the assets of an estate valued in excess of $10 million, but only when the beneficiary sells the assets; the assets won’t be taxed immediately upon death.
Under current law, if you die with an estate valued in excess of $5.45 million, you pay a tax of 40% on the excess value. Any appreciation inherent in the assets that make up your estate, however, is untaxed at your death; rather, the beneficiaries of your estate take the assets with a tax-free, “stepped-up” basis.Donald Trump’s proposal would eliminate the estate tax, making the next four years as good a time as any to die, and judging by my twitter feed, many people may not resist that notion. The opportunity to pass a valuable estate on to your heirs tax-free is a rare one; but understand, according to Trump’s proposal, it won’t be completely without tax. His plan would tax the appreciation inherent in the assets of an estate valued in excess of $10 million, but only when the beneficiary sells the assets; the assets won’t be taxed immediately upon death.
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